1. If an investor does not diversify his portfolio and instead puts all of his money in one stock, the appropriate measure of security risk for that investor is the ________.
variance of the market
stock's standard deviation
covariance with the market index
stock's beta
2. Historical returns have generally been ___ for stocks of small firms as (than) for stocks for large firms.
a) higher
b) none of these options
C) the same
d) lower