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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Definitions:

Sexual Dysfunction

A problem occurring during any phase of the sexual response cycle that prevents the individual or couple from experiencing satisfaction from sexual activity.

Myocardial Infarction

A medical emergency where blood flow to the heart is blocked, commonly known as a heart attack, leading to heart muscle damage or death.

Achieving Orgasm

The peak of sexual excitement, characterized by intense pleasure and accompanied by a series of rhythmic contractions in the genital area.

Sexual Function

The physical, psychological, and social aspects of sexual health and performance.