Business
Business, 06.08.2019 02:20, ktyree100

Stock x has a beta of 0.7 and stock y has a beta of 1.3. the standard deviation of each stock's returns is 20%. the stocks' returns are independent of each other, i. e., the correlation coefficient, r, between them is zero. portfolio p consists of 50% x and 50% y. given this information, which of the following statements is correct?
a) portfolio p has the same required return as the market (rm).b) portfolio p has a beta of 1.0 and a required return that is equal to the riskless rate, rrf. c) the required return on portfolio p is equal to the market risk premium (rm−rrf).d) portfolio p has a beta of 0.7.

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Stock x has a beta of 0.7 and stock y has a beta of 1.3. the standard deviation of each stock's retu...

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