Question: Stock A standard deviation = 21% Stock B standard deviation = 10% In a world where investors are risk averse and can hold only one

Stock A standard deviation = 21% Stock B standard deviation = 10% In a world where investors are risk averse and can hold only one stock, we can conclude that the required rate of return on Stock A will be greater than the required return on Stock B. However, if investors can form portfolios, it is possible that the required return on Stock B could be greater than for Stock A. True False

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