Business
Business, 20.11.2019 22:31, student0724

Stock a has a beta of 1.2 and a standard deviation of 25%.
stock b has a beta of 1.4 and a standard deviation of 20%.
portfolio ab was created by investing in a combination of stocks a and b.
portfolio ab has a beta of 1.25 and a standard deviation of 18%.
which of the following statements is correct?
options:
a) portfolio ab has more money invested in stock b than in stock a.
b) stock a has more market risk than stock b but less stand-alone risk.
c) portfolio ab has more money invested in stock a than in stock b.
d) portfolio ab has the same amount of money invested in each of the two stocks.
e) stock a has more market risk than portfolio ab.

answer
Answers: 2

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Stock a has a beta of 1.2 and a standard deviation of 25%.
stock b has a beta of 1.4 and a sta...

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