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Author Question: Stocks A, B, and C all have an expected return of 12% and a standard deviation of 30%. Stocks A and ... (Read 13 times)

ega16

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on: Aug 7, 2023
Stocks A, B, and C all have an expected return of 12% and a standard deviation of 30%. Stocks A and C have returns that are independent of one another; that is, their correlation coefficient equals zero. Stocks A and B have returns that are negatively correlated with one another; that is, their correlation coefficient is less than 0. Portfolio AB is a portfolio with half of its money invested in Stock A and half in Stock B. Portfolio AC is a portfolio with half of its money invested in Stock A and half invested in Stock C. Which of the following statements is correct?

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Portfolio AB has a standard deviation that is less than 30%.


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Portfolio AC has a standard deviation that is greater than 30%.


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Portfolio AB has an expected return that is greater than 12%.


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Portfolio AC has an expected return that is less than 12%.

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Marked as best answer by ega16 on Aug 7, 2023

brunoanthony

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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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ega16

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

milbourne11

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Reply 3 on: Yesterday
Excellent

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