Stocks A and B each have an expected return of 15%, a standard deviation of 20%, and a beta of 1.2. The returns on the two stocks have a correlation coefficient of 0.6. Your portfolio consists of 50% A and 50% B. Which of the following statements is CORRECT?
A. The portfolio's expected return is 15%.
B. The portfolio's standard deviation is greater than 20%.
C. The portfolio's beta is greater than 1.2.
D. The portfolio's standard deviation is 20%.
E. The portfolio's beta is less than 1.2.
Answers: 2
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The research of robert siegler and eric jenkins on the development of the counting-on strategy is an example of design.
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Stocks A and B each have an expected return of 15%, a standard deviation of 20%, and a beta of 1.2....
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