a)

Which of the following statements is incorrect?

	The tighter the probability distribution of expected future returns, the smaller the risk of a given investment as measured by the standard deviation.
	When investors require higher rates of return for investments that demonstrate higher variability of returns, this is evidence of risk aversion.
	A stock with above-average market risk will tend to be more volatile than an average stock, and it will definitely have a beta which is greater than 1.0.
	A stock's beta is more relevant as a measure of risk to an investor with a well-diversified portfolio than to an investor who holds only one stock.
	b) The _________, calculated as the standard deviation divided by the expected return, is a standardized measure of the risk per unit of expected return.