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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 45 times)

olgamartinez04

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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
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Marked as best answer by olgamartinez04 on Aug 7, 2023

bainer89

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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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olgamartinez04

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Reply 2 on: Aug 7, 2023
Great answer, keep it coming :)

covalentbond

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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