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Author Question: Stocks A, B, and C have betas of 0.7, 1.0, and 1.3, respectively. Portfolio P has one-third of its ... (Read 14 times)

lingual

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Stocks A, B, and C have betas of 0.7, 1.0, and 1.3, respectively. Portfolio P has one-third of its value invested in each stock. Each stock has a standard deviation of 31%, and their returns are independent of one another; that is, the correlation coefficient between each pair of stock is zero. If the market is in equilibrium, which of the following is correct regarding Portfolio P’s expected return?

it is greater than the expected return on Stock B


it is equal to the expected return on Stock B


it is less than the expected return on Stock B


it is greater than the expected return on Stock C



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Marked as best answer by lingual on Aug 7, 2023

gyvette

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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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lingual

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


nothere

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Reply 3 on: Yesterday
:D TYSM

 

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