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Short-answer questions (4 pts each) A) What does the historical relationship between volatility and return tell us about investors' attitude toward risk? (You should be
Short-answer questions (4 pts each) A) What does the historical relationship between volatility and return tell us about investors' attitude toward risk? (You should be meticulous and specific in your answer) B) Why do investors demand a higher return when investing in riskier securities? C) How does the standard deviation of historical returns affect our confidence in predicting the next period's return? Explain
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