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Author Question: Stock A has a beta of 1.5 and a standard deviation of 19%. Stock B has a beta of 0.5 and a standard ... (Read 105 times)

Ale

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on: Aug 7, 2023
Stock A has a beta of 1.5 and a standard deviation of 19%. Stock B has a beta of 0.5 and a standard deviation of 27%. Portfolio P has $300,000 consisting of $150,000 invested in Stock A and $150,000 in Stock B. Which of the following statements is correct? (Assume that stocks are in equilibrium.)

◦

Stock A’s returns are less highly correlated with the returns on most other stocks than are B’s returns.


◦

Portfolio P has a beta equal to 1.0.


◦

Portfolio P has a standard deviation of 23%.


◦

Stock B has a higher required rate of return than Stock A.

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

lhn821

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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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Ale

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Reply 2 on: Aug 7, 2023
Thanks for the timely response, appreciate it

xiaomengxian

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Reply 3 on: Yesterday
Gracias!

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