Stock a has an expected return of 10% and a standard deviation of 20%. stock b has an expected return of 13% and a standard deviation of 30%. the risk-free rate is 5% and the market risk premium, rm- rrf, is 6%. assume that the market is in equilibrium. portfolio ab has 50% invested in stock a and 50% invested in stock b. the returns of stock a and stock b are independent of one another, i. e., the correlation coefficient between them is zero. which of the following statements is correct? a. portfolio ab's required return is 11%. b. portfolio ab's standard deviation is 25%. c. stock a's beta is 0.8333. d. stock b's beta is 1.. e. since the two stocks have zero correlation, portfolio ab is riskless.

What are the main advantages and disadvantages of organizing a firm as a c corporation? the advantages are: (select all the choices that apply.) a. there is no limit on the number of owners a c corporation may have, thus allowing the corporation to raise substantial amounts of capital. b. the life of the business can continue beyond the death of any of the owners. c. the corporation can use the assets of the owners to pay for corporate liabilities. this attracts smaller investors to the corporation. d. the liability of the owners is limited to the amount of their investment in the firm. the disadvantages are: (select all the choices that apply.) a. income to a c corporation is subject to double taxation, once at the corporate level and again when received by the owners in the form of a dividend. b. the life of the business usually ends with the death of any of the owners. c. the c corporation is more complicated and more expensive to set up than other business entities. d. corporate liabilities can be passed on to the share

Which of the following is an example of search costs? a.) driving to a faraway place to find available goods b.) buying goods in some special way that is outside the normal channels c.) paying a premium cost for goods d.) selling extra goods for a discount price

In mexico, many garment or sewing shops found they could entice many young people to work for them if they offered clean, air conditioned work areas with high-quality locker rooms to clean up in after the work day. typically, traditional garment shops had to offer to get workers to apply for the hard, repetitive, and somewhat dangerous work. a. benchmark competitive wages b.compensating differentials c. monopoly wages d. wages based on human capital development of each employee