subject
Business, 07.04.2020 19:52 Jcmandique4062

Stocks A, B, and C all have an expected return of 10% and a standard deviation of 25%. Stocks A and B have returns that are independent of one another, i. e., their correlation coefficient, r, equals zero. Stocks A and C have returns that are negatively correlated with one another, i. e., r is less than 0. Portfolio AB is a portfolio with half of its money invested in Stock A and half in Stock B. Portfolio AC is a portfolio with half of its money invested in Stock A and half invested in Stock C. Which of the following statements is CORRECT?a. Portfolio AB has a standard deviation that is equal to 25%. b. Portfolio AC has a standard deviation that is less than 25%. c. Portfolio AB has a standard deviation that is greater than 25%. d. Portfolio AC has an expected return that is greater than 25%.

ansver
Answers: 1

Another question on Business

question
Business, 21.06.2019 19:00
Minolta inc. is considering a project that has the following cash flow and wacc data. what is the project's mirr? note that a project's projected mirr can be less than the wacc (and even negative), in which case it will be rejected. wacc: 10.00% year 0 1 2 3 4 cash flows -$850 300 $320 $340 $360
Answers: 3
question
Business, 22.06.2019 05:50
Match the steps for conducting an informational interview with the tasks in each step.
Answers: 1
question
Business, 23.06.2019 03:20
Milden company has an exclusive franchise to purchase a product from the manufacturer and distribute it on the retail level. as an aid in planning, the company has decided to start using a contribution format income statement. to have data to prepare such a statement, the company has analyzed its expenses and has developed the following cost formulas: cost cost formula cost of good sold $35 per unit sold advertising expense $210,000 per quarter sales commissions 6% of sales shipping expense ? administrative salaries $145,000 per quarter insurance expense $9,000 per quarter depreciation expense $76,000 per quarter management has concluded that shipping expense is a mixed cost, containing both variable and fixed cost elements. units sold and the related shipping expense over the last eight quarters follow: quarter units sold shipping expense year 1: first 10,000 $ 119,000 second 16,000 $ 175,000 third 18,000 $ 190,000 fourth 15,000 $ 164,000 year 2: first 11,000 $ 130,000 second 17,000 $ 185,000 third 20,000 $ 210,000 fourth 13,000 $ 147,000 milden companyโ€™s president would like a cost formula derived for shipping expense so that a budgeted contribution format income statement can be prepared for the next quarter. required: 1. using the high-low method, estimate a cost formula for shipping expe
Answers: 2
question
Business, 23.06.2019 04:00
Management training programs, mentoring programs, and coaching systems are examples of
Answers: 1
You know the right answer?
Stocks A, B, and C all have an expected return of 10% and a standard deviation of 25%. Stocks A and...
Questions
question
History, 29.03.2021 06:20
question
Social Studies, 29.03.2021 06:20
question
Mathematics, 29.03.2021 06:20
question
Mathematics, 29.03.2021 06:20
Questions on the website: 13722360