answer all to get a like.

1. Investors in the stock market should be compensated for the total risk of an individual stock.

a. true b.false

2. In the Capital Asset Pricing Model (CAPM), market risk is the only risk that should matter to a rational investor.

a.true b. false

3. The data presented in this chapter on stock returns from 1926-2017 indicates that the return on stocks of smaller companies is greater than the return on stocks of larger companies.

a.true b. false

4. Two related statistical measures of variability are called standard deviation and variance. The square root of the standard deviation is called the variance.

a.true b. false