Assume Stock a Has a Standard Deviation of 0

question 93

True/False

Assume Stock A has a standard deviation of 0.21 while Stock B has a standard deviation of 0.10.If both Stock A and Stock B must be held in isolation,and if investors are risk averse,we can conclude that Stock A will have a greater required return.However,if the assets could be held in portfolios,it is conceivable that the required return could be higher on the low standard deviation stock.

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Definitions:

Physical Attractiveness

How much a person's physical appearance is deemed attractive or handsome by societal standards.

Partners

Individuals or entities that share common interests and responsibilities in achieving a particular goal or undertaking a task together.

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The tendency to attribute one's own actions to external causes while attributing others' actions to their personality.

Defensive Attributions

Psychological strategies employed by individuals to deflect blame or rationalize failures, often by attributing causality to external factors.