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
Correct Answer:
Verified
Q43: The benefits of portfolio diversification are highest
Q45: What is the expected return on a
Q46: Although unique risk is present in differing
Q47: A stock that is considered to be
Q49: In general, which stocks should be combined
Q50: Which of the following risk types can
Q51: Risk factors that are expected to affect
Q52: When high growth is expected in the
Q53: Which of the following risks is most
Q71: Which of the following risks would be
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents