Question

1.If a stock's return has a large standard deviation, that suggests the stock has little risk is tru or false.
2.If the return on two stocks is highly and positively correlated(i.e., correlation coefficient=+1.0), combining these stoocks will reduce the risk associated with the portfolio is true or false.
If a stock is bought on margin
a. Part of the cost of investment is borrowed
b. the commissions on the investment are increased
c. The cost of the investment is reduce
d. the interest on the borrowed funds is set by the SEC.

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