Business, 30.11.2019 04:31 highschoolkid621

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. stocks expected stock return standard deviation betaa 10% 20% 1.0b 10% 10% 1.0c 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? a. portfolio ab has a standard deviation of 20%.b. portfolio ab's coefficient of variation is greater than 2.0.c. portfolio ab's required return is greater than the required return on stock a. d. portfolio abc's expected return is 10.7%.e. portfolio abc has a standard deviation of 20%.

Answers: 2

Show answers

Other questions on the subject: Business

Business, 22.06.2019 10:20, LadyHolmes67

Sye chase started and operated a small family architectural firm in 2016. the firm was affected by two events: (1) chase provided $25,000 of services on account, and (2) he purchased $2,800 of supplies on account. there were $250 of supplies on hand as of december 31, 2016. record the two transactions in the accounts. record the required year-end adjusting entry to reflect the use of supplies and the required closing entries. post the entries in the t-accounts and prepare a post-closing trial balance.

Answers: 1

continue

Business, 22.06.2019 12:50, HarleyQuinn117

Performance bicycle company makes steel and titanium handle bars for bicycles. it requires approximately 1 hour of labor to make one handle bar of either type. during the most recent accounting period, barr company made 7,700 steel bars and 2,300 titanium bars. setup costs amounted to $35,000. one batch of each type of bar was run each month. if a single company-wide overhead rate based on direct labor hours is used to allocate overhead costs to the two products, the amount of setup cost assigned to the steel bars will be:

Answers: 2

continue

Business, 22.06.2019 20:10, NorbxrtThaG

Assume that a local bank sells two services, checking accounts and atm card services. the bank’s only two customers are mr. donethat and ms. beenthere. mr. donethat is willing to pay $8 a month for the bank to service his checking account and $2 a month for unlimited use of his atm card. ms. beenthere is willing to pay only $5 for a checking account, but is willing to pay $9 for unlimited use of her atm card. assume that the bank can provide each of these services at zero marginal cost. refer to scenario 17-5. if the bank is unable to use tying, what is the profit-maximizing price to charge for a checking account

Answers: 3

continue

Business, 23.06.2019 02:50, afropenguin2853

Marcus nurseries inc.'s 2005 balance sheet showed total common equity of $2,050,000, which included $1,750,000 of retained earnings. the company had 100,000 shares of stock outstanding which sold at a price of $57.25 per share. if the firm had net income of $250,000 in 2006 and paid out $100,000 as dividends, what would its book value per share be at the end of 2006, assuming that it neither issued nor retired any common stock?

Answers: 1

continue

You know the right answer?

Consider the following information for three stocks, a, b, and c. the stocks' returns are positively...