Quiz Ch 08 – T/F Risk Aversion and Stock Returns

Fundamentals of Financial Management, Concise

Brigham and Houston

09th Edition

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True or false: For risk-averse investors with a single-stock portfolio, a stock with a standard deviation of 0.21 will necessitate a higher required rate of return compared to a stock with a standard deviation of 0.10. Nevertheless, in the context of portfolio holdings, it's conceivable that the stock with the lower standard deviation could demand a higher required return.

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