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

Author Question: Your portfolio consists of $100,000 invested in Stock X and $100,000 invested in Stock Y. Both ... (Read 58 times)

M1ch3a

  • Full Member
  • ***
  • Posts: 130
on: Aug 7, 2023
Your portfolio consists of $100,000 invested in Stock X and $100,000 invested in Stock Y. Both stocks have an expected return of 18%, betas of 1.7, and standard deviations of 29%. The returns of the two stocks are independent, so the correlation coefficient between them is zero. Which statement best describes the characteristics of your two-stock portfolio?

◦

Your portfolio has a standard deviation greater than 29%, and its beta is equal to 1.7.


◦

Your portfolio has a beta equal to 1.7, and its expected return is 18%.


◦

Your portfolio has a standard deviation less than 29%, and its beta is greater than 1.7.


◦

Your portfolio has a beta greater than 1.7, and its expected return is greater than 18%.

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 M1ch3a on Aug 7, 2023

Deonnak85

  • Full Member
  • ***
  • Posts: 158
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 55% of students answer this correctly


M1ch3a

  • Member
  • Posts: 130
Reply 2 on: Aug 7, 2023
:D TYSM

kthug

  • Member
  • Posts: 332
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

In the United States, an estimated 50 million unnecessary antibiotics are prescribed for viral respiratory infections.

Did you know?

GI conditions that will keep you out of the U.S. armed services include ulcers, varices, fistulas, esophagitis, gastritis, congenital abnormalities, inflammatory bowel disease, enteritis, colitis, proctitis, duodenal diverticula, malabsorption syndromes, hepatitis, cirrhosis, cysts, abscesses, pancreatitis, polyps, certain hemorrhoids, splenomegaly, hernias, recent abdominal surgery, GI bypass or stomach stapling, and artificial GI openings.

Did you know?

There are over 65,000 known species of protozoa. About 10,000 species are parasitic.

Did you know?

Fungal nail infections account for up to 30% of all skin infections. They affect 5% of the general population—mostly people over the age of 70.

Did you know?

Acute bronchitis is an inflammation of the breathing tubes (bronchi), which causes increased mucus production and other changes. It is usually caused by bacteria or viruses, can be serious in people who have pulmonary or cardiac diseases, and can lead to pneumonia.

A good disinfecting solution you can make yourself consists of 1 part bleach to 10 parts water. A good disinfecting solution you can make yourself consists of 1 part bleach to 10 parts water.
The flammable range consists of the concentration of fuel that will burn in atmospheric oxygen—the ... The flammable range consists of the concentration of fuel that will burn in atmospheric oxygen—the ...
Stock Market Tracks Growth in GDP Stock Market Tracks Growth in GDP
A polysome consists of an mRNA molecule loaded with many ribosomes, all engaged in translation. A polysome consists of an mRNA molecule loaded with many ribosomes, all engaged in translation.
Each chromosome consists of a single, long molecule of DNA within which are the sequences of individ Each chromosome consists of a single, long molecule of DNA within which are the sequences of individ
A taproot system consists of a large main root together with its lateral branchings A taproot system consists of a large main root together with its lateral branchings
Video: Atrophy

For a complete list of videos, visit our video library