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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
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? Group of answer choices An individual stock's standard deviation is equally likely to be larger or smaller. An individual stock's standard deviation will be larger. An individual stock's standard deviation will be smaller. Diamond Inc. is considering purchasing a diamond mine. They estimate that after taxes the mine will generate $2 million dollars a year in free cash flow for the next two years. Starting in the third year they expect the cash flows to decline by 5% per year forever as the supply of diamonds in the mine declines. If Diamond Inc has an Opportunity Cost of Capital of 15% what is the maximum price they should pay for the mine? Group of answer choices $10.75 Million $10.00 Million $10.43 Million $9.30 Million
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