An analyst is evaluating securities in a developing nation where the inflation rate is very high. as a result, the analyst has been warned not to ignore the cross-product between the real rate and inflation. a 6-year security with no maturity, default, or liquidity risk has a yield of 20.84%. if the real risk-free rate is 6%, what average rate of inflation is expected in this country over the next 6 years?

Stock a has a beta of 1.2 and a standard deviation of 20%. stock b has a beta of 0.8 and a standard deviation of 25%. portfolio p has $200,000 consisting of $100,000 invested in stock a and $100,000 in stock b. which of the following statements is correct? (assume that the stocks are in equilibrium.) (a) stock b has a higher required rate of return than stock a. (b) portfolio p has a standard deviation of 22.5%. (c) portfolio p has a beta equal to 1.0. (d) more information is needed to determine the portfolio's beta. (e) stock a's returns are less highly correlated with the returns on most other stocks than are b's returns.