This topic contains a solution. Click here to go to the answer

Author Question: George wants to pick a stock for his Diversified Hedge Fund. The fund has holdings in every country ... (Read 74 times)

madam-professor

  • Hero Member
  • *****
  • Posts: 584
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.


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
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
:D TYSM


xiazhe

  • Member
  • Posts: 331
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

Did you know?

As the western states of America were settled, pioneers often had to drink rancid water from ponds and other sources. This often resulted in chronic diarrhea, causing many cases of dehydration and death that could have been avoided if clean water had been available.

Did you know?

Never take aspirin without food because it is likely to irritate your stomach. Never give aspirin to children under age 12. Overdoses of aspirin have the potential to cause deafness.

Did you know?

About 3% of all pregnant women will give birth to twins, which is an increase in rate of nearly 60% since the early 1980s.

Did you know?

The heart is located in the center of the chest, with part of it tipped slightly so that it taps against the left side of the chest.

Did you know?

Fungal nail infections account for up to 30% of all skin infections. They affect 5% of the general population—mostly people over the age of 70.

For a complete list of videos, visit our video library