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Suppose two investors are considering buying Twitter (TWTR). The standard deviation of TWTR is about 55% per year. Investor 1 holds no other securities, so

Suppose two investors are considering buying Twitter (TWTR). The standard

deviation of TWTR is about 55% per year. Investor 1 holds no other securities, so TWTR would be the first investment (for now). Investor 2 holds a portfolio of stocks.

1. Should the risk of TWTR be the same from each investor's point of view?

2. Who should be willing to pay more for one share of TWTR?

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