What is the typical relationship between the standard deviation of an individual

Question

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? Individual stock's standard deviation will be lower. Individual stock's standard deviation will be higher. The standard deviations should be equal. A stock's beta measures the: quantity firm specific risk an investor must bear. quantity of non-diversifiable risk an investor must bear. market risk premium on the stock. The appropriate opportunity cost of capital is the return that investors would expect to earn on investments with: the same risk. the risk-free return the expected return on the S&P; 500 index.

Explanation / Answer

6. c is right option

as value firms pays more dividends

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