A Stock That Is Risky on a Stand-Alone Basis

Multiple Choice

A stock that is risky on a stand-alone basis:

A) is just as risky in a portfolio.
B) is one that just about never produces a return that's higher than expected.
C) is likely to produce a return that is substantially different from its mean or expected return.
D) will have no effect on a portfolio's risk if it is added carefully.