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:

Incidence Rates

denote the frequency at which new cases of a disease or condition occur in a population over a specified period of time.

Mortality Rates

The measure of the frequency of occurrence of death in a defined population during a specified period.

Seasonal Influenza

An infectious respiratory illness caused by influenza viruses that occur seasonally, typically in the fall and winter.

Age-Specific Mortality Rate

The death rate within a specific age group in a population during a certain time period.