Question: Standard deviation is an important concept in portfolio theory because: a. it is a measure of risk for a stock when it is held on

Standard deviation is an important concept in portfolio theory because:

a. it is a measure of risk for a stock when it is held on a stand-alone basis.

b. it is a measure of risk for a stock when it is held in a diversified portfolio.

c. it is a measure of the variability of a stock's return.

d. both a. and c. are correct.

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