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Problem 1: Which of the following is NOT true (incorrect) regarding standard deviation.
a- The higher a stock's standard deviation value is, the higher the risk associated with the stock.
b- Standard deviation is used to measure the total risk of a stock held in isolation.
c- Standard deviation is used to measure the risk of a "well diversified" portfolio.
d- A stock with a low/small standard deviation has a narrower range of historical returns than a stock with a high/large standard deviation.
e- The higher a stock's standard deviation is, the lower the probability that the stock's actual return will equal its expected return.
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