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Author Question: Your portfolio consists of $100,000 invested in Stock X and $100,000 invested in Stock Y. Both ... (Read 9 times)

M1ch3a

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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
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Marked as best answer by M1ch3a on Aug 7, 2023

Deonnak85

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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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M1ch3a

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

emsimon14

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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