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 60 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
Gracias!

T4T

  • Member
  • Posts: 348
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

The Romans did not use numerals to indicate fractions but instead used words to indicate parts of a whole.

Did you know?

In 1864, the first barbiturate (barbituric acid) was synthesized.

Did you know?

Excessive alcohol use costs the country approximately $235 billion every year.

Did you know?

Over time, chronic hepatitis B virus and hepatitis C virus infections can progress to advanced liver disease, liver failure, and hepatocellular carcinoma. Unlike other forms, more than 80% of hepatitis C infections become chronic and lead to liver disease. When combined with hepatitis B, hepatitis C now accounts for 75% percent of all cases of liver disease around the world. Liver failure caused by hepatitis C is now leading cause of liver transplants in the United States.

Did you know?

In 1885, the Lloyd Manufacturing Company of Albany, New York, promoted and sold "Cocaine Toothache Drops" at 15 cents per bottle! In 1914, the Harrison Narcotic Act brought the sale and distribution of this drug under federal control.

Deviation of Normal Posture Deviation of Normal Posture
Three standard sizes of cuffs: a small cuff for a child or frail adult; a normal-sized adult cuff; ... Three standard sizes of cuffs: a small cuff for a child or frail adult; a normal-sized adult cuff; ...
ROM exercises on a patient’s wrist: ulnar deviation. ROM exercises on a patient’s wrist: ulnar deviation.
How to sketch a quadratic equation that is in standard form (Question 1) How to sketch a quadratic equation that is in standard form (Question 1)
How to quickly determine the maximum or minimum value of a quadratic equation in standard form How to quickly determine the maximum or minimum value of a quadratic equation in standard form
Stock Market Question Stock Market Question
Video: Covalent bonds - role in the body

For a complete list of videos, visit our video library