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

Author Question: Stocks A, B, and C all have an expected return of 12% and a standard deviation of 30%. Stocks A and ... (Read 34 times)

ega16

  • Full Member
  • ***
  • Posts: 145
on: Aug 7, 2023
Stocks A, B, and C all have an expected return of 12% and a standard deviation of 30%. Stocks A and C have returns that are independent of one another; that is, their correlation coefficient equals zero. Stocks A and B have returns that are negatively correlated with one another; that is, their correlation coefficient is less than 0. Portfolio AB is a portfolio with half of its money invested in Stock A and half in Stock B. Portfolio AC is a portfolio with half of its money invested in Stock A and half invested in Stock C. Which of the following statements is correct?

◦

Portfolio AB has a standard deviation that is less than 30%.


◦

Portfolio AC has a standard deviation that is greater than 30%.


◦

Portfolio AB has an expected return that is greater than 12%.


◦

Portfolio AC has an expected return that is less than 12%.

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 ega16 on Aug 7, 2023

brunoanthony

  • Full Member
  • ***
  • Posts: 169
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


ega16

  • Member
  • Posts: 145
Reply 2 on: Aug 7, 2023
YES! Correct, THANKS for helping me on my review

zacnyjessica

  • Member
  • Posts: 345
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Nitroglycerin is used to alleviate various heart-related conditions, and it is also the chief component of dynamite (but mixed in a solid clay base to stabilize it).

Did you know?

Barbituric acid, the base material of barbiturates, was first synthesized in 1863 by Adolph von Bayer. His company later went on to synthesize aspirin for the first time, and Bayer aspirin is still a popular brand today.

Did you know?

A cataract is a clouding of the eyes' natural lens. As we age, some clouding of the lens may occur. The first sign of a cataract is usually blurry vision. Although glasses and other visual aids may at first help a person with cataracts, surgery may become inevitable. Cataract surgery is very successful in restoring vision, and it is the most frequently performed surgery in the United States.

Did you know?

There are approximately 3 million unintended pregnancies in the United States each year.

Did you know?

Elderly adults are at greatest risk of stroke and myocardial infarction and have the most to gain from prophylaxis. Patients ages 60 to 80 years with blood pressures above 160/90 mm Hg should benefit from antihypertensive treatment.

Allen Test: A patent ulnar artery reveals the return of palm perfusion despite radial artery compres Allen Test: A patent ulnar artery reveals the return of palm perfusion despite radial artery compres
In this 1900 cartoon, oil baron John D. Rockefeller holds the White House in the palm of his hand wh In this 1900 cartoon, oil baron John D. Rockefeller holds the White House in the palm of his hand wh
ROM exercises on a patient’s wrist: ulnar deviation. ROM exercises on a patient’s wrist: ulnar deviation.
a) Standard PCR machine used for genotyping and (b) agarose gel to detect DNA fragments. a) Standard PCR machine used for genotyping and (b) agarose gel to detect DNA fragments.
How to write a quadratic equation in standard form when a graph is given How to write a quadratic equation in standard form when a graph is given
The Standard Rain Gauge The Standard Rain Gauge
Video: Interpreting a cladogram Animation

For a complete list of videos, visit our video library