Amanda Talks with Several Different Brokers at a Social Gathering

question 21

Multiple Choice

Amanda talks with several different brokers at a social gathering.She hears the following advice from brokers A,B,and C.Which broker,if any,gave her incorrect advice?

• A)There are risks in holding stocks, even in a highly diversified portfolio.
• B)Portfolios with smaller standard deviations have lower risk.
• C)Stocks with greater risks offer lower average returns.
• D)They all gave her correct advice.

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