Stocks of small firms as for stocks for large firms

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Reference no: EM132024233

1. If an investor does not diversify his portfolio and instead puts all of his money in one stock, the appropriate measure of security risk for that investor is the ________.

variance of the market

stock's standard deviation

covariance with the market index

stock's beta

2. Historical returns have generally been ___ for stocks of small firms as (than) for stocks for large firms.

a) higher

b) none of these options

C) the same

d) lower

Reference no: EM132024233

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