Discuss why standard deviation should not be used when assessing a stock that is considered to be included in a well diversified portfolio

Read the discussion question below, then post a comment of at least 200 words.

Please discuss why standard deviation should not be used when assessing a stock that is considered to be included in a well diversified portfolio.

Read the discussion question below, then post a comment of at least 200 words.

If investors’ aversion to risk increases, would the risk premium on a high-beta stock increase more or less than that on a low-beta stock? Discuss.