This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: George wants to pick a stock for his Diversified Hedge Fund. The fund has holdings in every country ... (Read 65 times)

madam-professor

  • Hero Member
  • *****
  • Posts: 584
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
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by madam-professor on Apr 25, 2021

juicepod

  • Sr. Member
  • ****
  • Posts: 310
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.
Answer Preview
Only 64% of students answer this correctly


madam-professor

  • Member
  • Posts: 584
Reply 2 on: Apr 25, 2021
Wow, this really help

rleezy04

  • Member
  • Posts: 322
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Your skin wrinkles if you stay in the bathtub a long time because the outermost layer of skin (which consists of dead keratin) swells when it absorbs water. It is tightly attached to the skin below it, so it compensates for the increased area by wrinkling. This happens to the hands and feet because they have the thickest layer of dead keratin cells.

Did you know?

More than 150,000 Americans killed by cardiovascular disease are younger than the age of 65 years.

Did you know?

Asthma-like symptoms were first recorded about 3,500 years ago in Egypt. The first manuscript specifically written about asthma was in the year 1190, describing a condition characterized by sudden breathlessness. The treatments listed in this manuscript include chicken soup, herbs, and sexual abstinence.

Did you know?

The newest statin drug, rosuvastatin, has been called a superstatin because it appears to reduce LDL cholesterol to a greater degree than the other approved statin drugs.

Did you know?

Each year in the United States, there are approximately six million pregnancies. This means that at any one time, about 4% of women in the United States are pregnant.

Fallow deer at Avon Valley Country Park, Bristol, England Fallow deer at Avon Valley Country Park, Bristol, England
In this painting evangelist George Whitefield appears to be cross-eyed. This is no fault of John Wol In this painting evangelist George Whitefield appears to be cross-eyed. This is no fault of John Wol
This is the first portrait of George Washington, painted by John Gadsby Chapman. Washington’s right This is the first portrait of George Washington, painted by John Gadsby Chapman. Washington’s right
George Herbert Mead (1863– 1931) is one of the founders of symbolic interactionism, a major ... George Herbert Mead (1863– 1931) is one of the founders of symbolic interactionism, a major ...
Page from a copy of Nizami's Khamseh (Quintet) illustrating a princely country feast, Persian, ... Page from a copy of Nizami's Khamseh (Quintet) illustrating a princely country feast, Persian, ...
Suppose a country imports televisions. The country's supply and demand curves are shown in ... Suppose a country imports televisions. The country's supply and demand curves are shown in ...
Video: The Vestibular System

For a complete list of videos, visit our video library