Amanda Talks with Several Different Brokers at a Social Gathering

Amanda talks with several different brokers at a social gathering. She hears the following advice from brokers A, B, and C. Which broker, if any, gave her incorrect advice?

A) Broker A: "There are risks in holding stocks, even in a highly diversified portfolio."
B) Broker B: "Portfolios with smaller standard deviations have lower risk."
C) Broker C: "Stocks with greater risks offer lower average returns."
D) They all gave her correct advice.

Correct Answer:

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