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

Author Question: Stock X has a beta of 1.2 and Stock Y has a beta of 0.8. The standard deviation of each stocks ... (Read 37 times)

olgamartinez04

  • Full Member
  • ***
  • Posts: 124
on: Aug 7, 2023
Stock X has a beta of 1.2 and Stock Y has a beta of 0.8. The standard deviation of each stock’s returns is 19%. The stocks’ returns are independent of each other; that is, the correlation coefficient between them is zero. Portfolio P consists of 50% X and 50% Y. Given this information, which of the following statements is correct?

◦

Portfolio P has the same required return as the market (rM).


◦

Portfolio P has a beta of 0.8.


◦

Portfolio P has a beta of 1.0 and a required return that is equal to the riskless rate, rRF.


◦

The required return on Portfolio P is equal to the market risk premium (rM– rRF).

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by olgamartinez04 on Aug 7, 2023

bainer89

  • Full Member
  • ***
  • Posts: 181
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.
Answer Preview
Only 50% of students answer this correctly


olgamartinez04

  • Member
  • Posts: 124
Reply 2 on: Aug 7, 2023
Excellent

mochi09

  • Member
  • Posts: 335
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

Eating carrots will improve your eyesight. Carrots are high in vitamin A (retinol), which is essential for good vision. It can also be found in milk, cheese, egg yolks, and liver.

Did you know?

IgA antibodies protect body surfaces exposed to outside foreign substances. IgG antibodies are found in all body fluids. IgM antibodies are the first type of antibody made in response to an infection. IgE antibody levels are often high in people with allergies. IgD antibodies are found in tissues lining the abdomen and chest.

Did you know?

If all the neurons in the human body were lined up, they would stretch more than 600 miles.

Did you know?

The human body's pharmacokinetics are quite varied. Our hair holds onto drugs longer than our urine, blood, or saliva. For example, alcohol can be detected in the hair for up to 90 days after it was consumed. The same is true for marijuana, cocaine, ecstasy, heroin, methamphetamine, and nicotine.

Did you know?

In 2012, nearly 24 milliion Americans, aged 12 and older, had abused an illicit drug, according to the National Institute on Drug Abuse (NIDA).

Deviation of Normal Posture Deviation of Normal Posture
How to write a quadratic equation in standard form when a graph is given How to write a quadratic equation in standard form when a graph is given
Standard reduction potentials of the major respiratory electron carriers Standard reduction potentials of the major respiratory electron carriers
ADHD (Stock photo) ADHD (Stock photo)
Standard base-pairing relationships Standard base-pairing relationships
What nuclide is produced when K-43 decays by beta emission? What nuclide is produced when K-43 decays by beta emission?
Video: Forming urine ( influencing factors), Forming dilute urine & Forming concentrated urine

For a complete list of videos, visit our video library