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Business, 14.11.2019 20:31 claupatri120

Your portfolio consists of $50,000 invested in stock x and $50,000 invested in stock y. both stocks have return of 15%, betas of 1.6, and standard deviations of 30%-the returns ofthe two stocks are independent correlation coefficient between them, xy, is zero. which of the following statements best describes the cl your 2-stock portfolio?
a) your portfolio has a beta greater than 1.6, and its expected return is greater than 15%
b) your portfolio has a beta equal to 1.6, and its expected return is 15%
c) your portfolio has a standard deviation greater than 30% and a beta equal to 1.6.
d) your portfolio has a standard deviation less than 30%, and its beta is greater than 1.6
e) your portfolio has a standard deviation of 30%, and its expected return is 15%.

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