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

Author Question: Your portfolio consists of $100,000 invested in Stock X and $100,000 invested in Stock Y. Both ... (Read 57 times)

M1ch3a

  • Full Member
  • ***
  • Posts: 130
on: Aug 7, 2023
Your portfolio consists of $100,000 invested in Stock X and $100,000 invested in Stock Y. Both stocks have an expected return of 18%, betas of 1.7, and standard deviations of 29%. The returns of the two stocks are independent, so the correlation coefficient between them is zero. Which statement best describes the characteristics of your two-stock portfolio?

◦

Your portfolio has a standard deviation greater than 29%, and its beta is equal to 1.7.


◦

Your portfolio has a beta equal to 1.7, and its expected return is 18%.


◦

Your portfolio has a standard deviation less than 29%, and its beta is greater than 1.7.


◦

Your portfolio has a beta greater than 1.7, and its expected return is greater than 18%.

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 M1ch3a on Aug 7, 2023

Deonnak85

  • Full Member
  • ***
  • Posts: 158
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 55% of students answer this correctly


M1ch3a

  • Member
  • Posts: 130
Reply 2 on: Aug 7, 2023
Gracias!

amandalm

  • Member
  • Posts: 306
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Human kidneys will clean about 1 million gallons of blood in an average lifetime.

Did you know?

There are actually 60 minerals, 16 vitamins, 12 essential amino acids, and three essential fatty acids that your body needs every day.

Did you know?

A recent study has found that following a diet rich in berries may slow down the aging process of the brain. This diet apparently helps to keep dopamine levels much higher than are seen in normal individuals who do not eat berries as a regular part of their diet as they enter their later years.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates's recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

More than 34,000 trademarked medication names and more than 10,000 generic medication names are in use in the United States.

Sunlight consists of a spectrum of colors, visible here in a rainbow. Sunlight consists of a spectrum of colors, visible here in a rainbow.
In 2009, historian Woody Holton described how Abigail Adams shrewdly invested in the Continental Con In 2009, historian Woody Holton described how Abigail Adams shrewdly invested in the Continental Con
skeletal muscle consists of a group of fibers held together by connective tissue. It is enclosed in ... skeletal muscle consists of a group of fibers held together by connective tissue. It is enclosed in ...
A good disinfecting solution you can make yourself consists of 1 part bleach to 10 parts water. A good disinfecting solution you can make yourself consists of 1 part bleach to 10 parts water.
Offshore spawning stock biomass, Grand Bank Atlantic Cod since the early 1980s Offshore spawning stock biomass, Grand Bank Atlantic Cod since the early 1980s
Hank Wilkins invested $4200 in a mutual fund containing bonds. Hank Wilkins invested $4200 in a mutual fund containing bonds.
Video: DNA Replication

For a complete list of videos, visit our video library