Assume Stock a Has a Standard Deviation of 0

question 93

True/False

Assume Stock A has a standard deviation of 0.21 while Stock B has a standard deviation of 0.10.If both Stock A and Stock B must be held in isolation,and if investors are risk averse,we can conclude that Stock A will have a greater required return.However,if the assets could be held in portfolios,it is conceivable that the required return could be higher on the low standard deviation stock.

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Definitions:

Genes

Units of heredity made up of DNA that act as instructions to make molecules called proteins, influencing the development, functioning, and reproduction of organisms.

Behavior Geneticists

Scientists who study the genetic and environmental influences on human behavior, often through twin and adoption studies.

Selective Breeding Studies

Research activities focused on the intentional breeding of organisms to produce offspring with desirable traits, often used in agriculture and animal husbandry.

Genetic Makeup

The unique combination of genes inherited from one's parents, influencing physical and sometimes behavioral traits.