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Business, 30.11.2019 06:31 marmee

Stocks a and b each have an expected return of 12%, a beta of 1.2, and a standard deviation of 25%. the returns on the two stocks have a correlation of +0.6. portfolio p has 50% in stock a and 50% in stock b.
which of the following statements is correct?
a. portfolio p has a beta that is greater than 1.2.
b. portfolio p has a standard deviation that is greater than 25%.
c. portfolio p has an expected return that is less than 12%.
d. portfolio p has a standard deviation that is less than 25%.
e. portfolio p has a beta that is less than 1.2.

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