If Investors Are Risk Averse and Hold Only One Stock

question 12

True/False

If investors are risk averse and hold only one stock, we can conclude that the required rate of return on a stock whose standard deviation is 0.21 will be greater than the required return on a stock whose standard deviation is 0.10.However, if stocks are held in portfolios, it is possible that the required return could be higher on the low standard deviation stock.

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Used Motor Vehicle

Used motor vehicle refers to a car, truck, or other motor-powered transportation device that has had one or more previous owners before the current possessor.

Fair Credit Reporting Act

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