Stock A has an expected return of 10% and a standard deviation of 10%. Stock B has an expected return of 15% and a standard deviation of 20%. The two stocks are perfectly negatively correlated ( = -1)
What set of weights yields a portfolio with a zero variance?
A) 2/3 in Stock A; 1/3 in Stock B
B) 2/3 in Stock B; 1/3 in Stock A
C) 2 in Stock A; -1 in Stock B
D) 2 in Stock B; -1 in Stock A
E) None of the above.
A
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Indicate whether the statement is true or false
The tendency of the rate earned on stockholders' equity to vary disproportionately from the rate earned on total assets is sometimes referred to as
A) leverage B) solvency C) yield D) quick assets
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A) you put together your own health care network. B) you are provided quality care at typically high cost. C) your primary care physician serves as the gatekeeper to your health care network. D) government regulations determine the provision of medical services.
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A) less than or equal to 20% B) greater than 20% but less than or equal to 25% C) greater than 25% but less than or equal to 30% D) greater than 30%