... The standard deviation of a well- Brealey−Meyers: Principles of Corporate Finance, Seventh Edition II. Risk 7. Introduction to Risk, Return, and the Opportunity Cost of Capital© The McGraw−Hill ... the net profit per play is the payoff less $100. Brealey−Meyers: Principles of Corporate Finance, Seventh Edition II. Risk 7. Introduction to Risk, Return, and the Opportunity Cost of Capital© ... Stocks Make a Diversi-fied Portfolio?” Journal of Financial and QuantitativeAnalysis 22 (September 1987),pp. 353–363. Brealey−Meyers: Principles of Corporate Finance, Seventh Edition II. Risk...