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:

Electrons

Electrons are subatomic particles with a negative electric charge, found in all atoms and acting as the primary carrier of electricity in solids.

Positive Ions

Atoms or molecules that have lost one or more electrons, resulting in a net positive charge.

Gain Electrons

The process by which an atom or a molecule acquires one or more electrons, often leading to a reduction in oxidation state.

Lose Electrons

Refers to the process in which an atom or molecule undergoes oxidation, resulting in the release of electrons.