The Standard Deviations of Individual Stocks Are Generally Higher Than

question 81

Multiple Choice

The standard deviations of individual stocks are generally higher than the standard deviation of the market portfolio because individual stocks:

• A) offer higher returns.
• B) have more systematic risk.
• C) have no diversification of risk.
• D)do not have unique risk.

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Definitions:

Environment

The sum of all external conditions and influences affecting the life and development of organisms.

Sun Energy

The radiant energy emitted by the Sun, which is harnessed by plants for photosynthesis and influences Earth's climate and weather.

Decomposers

Organisms that break down dead or decaying organisms, contributing to nutrient recycling in ecosystems.

Producers

Organisms, typically plants or algae, that produce organic compounds from simple substances such as carbon dioxide, serving as a base for all food chains.