Business, 10.03.2020 04:00, eysahvdtuj

Consider the following information for three stocks, A, B, and C. The stocks' returns are positively but not perfectly positively correlated with one another, i. e., the correlations are all between 0 and 1. Expected Standard Stock Return Deviation Beta A 10% 20% 1.0 B 10% 10% 1.0 C 12% 12% 1.4 Portfolio AB has half of its funds invested in Stock A and half in Stock B. Portfolio ABC has one third of its funds invested in each of the three stocks. The risk-free rate is 5%, and the market is in equilibrium, so required returns equal expected returns. Which of the following statements is CORRECT? Group of answer choices Portfolio AB's coefficient of variation is greater than 2.0. Portfolio ABC's expected return is 10.66667%. Portfolio AB has a standard deviation of 20%. Portfolio AB's required return is greater than the required return on Stock A. Portfolio ABC has a standard deviation of 20%.

Answers: 2

Show answers

Other questions on the subject: Business

Business, 21.06.2019 16:00, idcbrooo

Sarah borrowed $16,500 on may 23 with interest due on september 3. if the interest rate is 9%, find the interest on the loan using exact interest and ordinary interest.

Answers: 2

continue

Business, 22.06.2019 17:30, SkyMelvin

What do you think: would it be more profitable to own 200 shares of penny’s pickles or 1 share of exxon? why do you think that?

Answers: 1

continue

Business, 22.06.2019 19:40, raymondleggett44

When a company produces and sells x thousand units per week, its total weekly profit is p thousand dollars, where upper p equals startfraction 800 x over 100 plus x squared endfraction . the production level at t weeks from the present is x equals 4 plus 2 t. find the marginal profit, startfraction dp over dx endfraction and the time rate of change of profit, startfraction dp over dt endfraction . how fast (with respect of time) are profits changing when tequals8?

Answers: 1

continue

Business, 22.06.2019 21:50, preguntassimples

Assume that (i) setups need to be completed first; (ii) a setup can only start once the batch has arrived at the resource, and (iii) all flow units of a batch need to be processed at a resource before any of the units of the batch can be moved to the next resource. process step 1 molding 2 painting 3 dressing setup time 15 min. 30 min. no setup processing time 0.25 min./unit 0.15 min./unit 0.30 min./unit which batch size would minimize inventory without decreasing the process capacity?

Answers: 1

continue

Do you know the correct answer?

Consider the following information for three stocks, A, B, and C. The stocks' returns are positively...