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Jane Adams Invests All Her Money in the Stock of One

Question 60

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Jane Adams invests all her money in the stock of one firm. Which of the following must be true?


A) Her return will have more volatility than the return in the overall stock market.
B) Her return will have less volatility than the return in the overall stock market.
C) Her return will have the same volatility as the return in the overall stock market.
D) There is no relationship between her return and the return in the overall stock market.

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