- In an efficient market, a stock with a standard deviation of returns of 20% must have a higher expected return than a stock with a standard deviation of 10%. Otherwise, the concept of a risk- return tradeoff will be violate Select one: O True O False Previous page Next page Jump to... Return to: Topic 13 - A firm's cost of capital is influenced by Select one: a. par value of common stock b. net income c. capital structure d. the current ratio Previous page Next page Jump to... Return to: Topic 1>