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. O True O False The Capital Asset Pricing Model (CAPM) can be used to 1) identify a stock's fair return, 2) determine investors' required rate of return, and 3) evaluate stock or investment fund manager performance. O True O False The three aspects of cash flows that affect an investment's value are the amount, the timing, and risk. O True False