what is the typical relationship between the return standard deviation of an individual common stock and the
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Question:
what is the typical relationship between the return standard deviation of an individual common stock and the return standard deviation of a diversified portfolio of common stocks?
A. The individual stocks return standard deviation is lower.
B. the individual stocks return standard deviation is higher.
C. The return standard deviations should be equal.
D. There is no way to predict this relationship.
E. None of the above.
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