This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Stock X has a beta of 1.2 and Stock Y has a beta of 0.8. The standard deviation of each stocks ... (Read 26 times)

olgamartinez04

  • Full Member
  • ***
  • Posts: 124
on: Aug 7, 2023
Stock X has a beta of 1.2 and Stock Y has a beta of 0.8. The standard deviation of each stock’s returns is 19%. The stocks’ returns are independent of each other; that is, the correlation coefficient between them is zero. Portfolio P consists of 50% X and 50% Y. Given this information, which of the following statements is correct?

◦

Portfolio P has the same required return as the market (rM).


◦

Portfolio P has a beta of 0.8.


◦

Portfolio P has a beta of 1.0 and a required return that is equal to the riskless rate, rRF.


◦

The required return on Portfolio P is equal to the market risk premium (rM– rRF).

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by olgamartinez04 on Aug 7, 2023

bainer89

  • Full Member
  • ***
  • Posts: 181
Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 50% of students answer this correctly


olgamartinez04

  • Member
  • Posts: 124
Reply 2 on: Aug 7, 2023
:D TYSM

amynguyen1221

  • Member
  • Posts: 355
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

According to animal studies, the typical American diet is damaging to the liver and may result in allergies, low energy, digestive problems, and a lack of ability to detoxify harmful substances.

Did you know?

Historic treatments for rheumatoid arthritis have included gold salts, acupuncture, a diet consisting of apples or rhubarb, nutmeg, nettles, bee venom, bracelets made of copper, prayer, rest, tooth extractions, fasting, honey, vitamins, insulin, snow collected on Christmas, magnets, and electric convulsion therapy.

Did you know?

Parkinson's disease is both chronic and progressive. This means that it persists over a long period of time and that its symptoms grow worse over time.

Did you know?

The people with the highest levels of LDL are Mexican American males and non-Hispanic black females.

Did you know?

Many of the drugs used by neuroscientists are derived from toxic plants and venomous animals (such as snakes, spiders, snails, and puffer fish).

Offshore spawning stock biomass, Grand Bank Atlantic Cod since the early 1980s Offshore spawning stock biomass, Grand Bank Atlantic Cod since the early 1980s
Measuring the client’s weight with a standard platform scale Measuring the client’s weight with a standard platform scale
Assume z is a standard normal random variable. What is the value of z if the area to the right ... Assume z is a standard normal random variable. What is the value of z if the area to the right ...
Find a quadractic equation that models the data in standard form Find a quadractic equation that models the data in standard form
What nuclide is produced when K-43 decays by beta emission? What nuclide is produced when K-43 decays by beta emission?
Video: What are Strong & Weak Acids and How they're different?

For a complete list of videos, visit our video library