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Author Question: Stock A has a beta of 1.6 and a standard deviation of 22%. Stock B has a beta of 1.2 and a standard ... (Read 67 times)

bryantpr01

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Stock A has a beta of 1.6 and a standard deviation of 22%. Stock B has a beta of 1.2 and a standard deviation of 27%. Portfolio AB was created by investing in a combination of Stocks A and B. Portfolio AB has a beta of 1.3 and a standard deviation of 20%. Which of the following statements is correct?

Portfolio AB has less money invested in Stock A than in Stock B.


Stock A has less market risk than Stock B but more stand-alone risk.


Stock A has less market risk than Portfolio AB.


Portfolio AB has the same amount of money invested in each of the two stocks.



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Marked as best answer by bryantpr01 on Aug 7, 2023

RodrickHac

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bryantpr01

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


nanny

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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