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Author Question: Stocks A and B both have an expected return of 13% and a standard deviation of returns of 22%. ... (Read 45 times)

kmoyer2

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on: Aug 7, 2023
Stocks A and B both have an expected return of 13% and a standard deviation of returns of 22%. Stock A has a beta of 1.5 and Stock B has a beta of 0.7. The correlation coefficient, r, between the two stocks is 0.7. Portfolio P is a portfolio with 50% invested in Stock A and 50% invested in B. Which of the following statements is correct?

◦

Portfolio P has more market risk than Stock B but less market risk than Stock A.


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Portfolio P has a coefficient of variation of 1.69.


◦

Portfolio P has a standard deviation of 22% and a beta of 1.1.


◦

Stock A should have a lower expected return than Stock B as viewed by the marginal investor.

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by kmoyer2 on Aug 7, 2023

wangyichun

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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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kmoyer2

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Reply 2 on: Aug 7, 2023
Great answer, keep it coming :)

mcabuhat

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Reply 3 on: Yesterday
:D TYSM

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