Question 1 3 pts A security has the following returns. What is the appropriate rate to use when predicting future returns? Year 1: +12% Year 2: + 2% Year 3: (10%) Year 4: + 7% 2.75% 2.41% cannot determine Question 2 3 pts What is the typical relationship between the standard deviation of an individual common stock and the standard deviation of a well-diversified portfolio of common stocks? O The standard deviations should be equal. Individual stock's standard deviation will be higher. Individual stock's standard deviation will be lower