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Author Question: George wants to pick a stock for his Diversified Hedge Fund. The fund has holdings in every country ... (Read 72 times)

madam-professor

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on: Apr 25, 2021
George wants to pick a stock for his Diversified Hedge Fund. The fund has holdings in every country with a stock market. George is trying to decide which asset he should add to his portfolio: Stock A or Stock B. Expected return, Standard deviation and beta values for the two stocks are outlined in the table below. Which stock is best for George's portfolio and why?

​Stock AStock BRisk-Free Asset
Expected Return8%12%5%
Standard Deviation12%22%​
Beta12​

◦ Stock A because it has a lower Beta.
◦ Stock A because it has more return per unit of standard deviation.
◦ Stock B because it has a higher return.
◦ Stock B because it has a higher Treynor Index with respect to standard deviation.
◦ Stock B because it has a higher Treynor Index with respect to Beta.
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by madam-professor on Apr 25, 2021

juicepod

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Reply #1 on: Apr 25, 2021
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.
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madam-professor

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Reply 2 on: Apr 25, 2021
Great answer, keep it coming :)

marict

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Reply 3 on: Yesterday
Wow, this really help

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