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Author Question: Stock X has a beta of 0.7, while Stock Y has a beta of 1.3. Which of the following statements is correct? (Read 50 times)

dekbert

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on: Aug 7, 2023
Stock X has a beta of 0.7, while Stock Y has a beta of 1.3. Which of the following statements is correct?

◦

A portfolio consisting of $80,000 invested in Stock X and $80,000 invested in Stock Y will have a lower required return than that of the overall market.


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Stock Y must have a higher expected return and a higher standard deviation than Stock X.


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If the market risk premium decreases but expected inflation is unchanged, the required return on both stocks will decrease, but the decrease will be smaller for Stock X.


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If expected inflation decreases but the market risk premium is unchanged, the required return on both stocks will increase by the same amount.

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by dekbert on Aug 7, 2023

lola.jashay

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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.
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dekbert

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Reply 2 on: Aug 7, 2023
Wow, this really help

Dnite

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Reply 3 on: Yesterday
Excellent

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