The two stocks in your portfolio, X and Y, have independent returns, so the correlation between them, rXY is zero. Your portfolio consists of $50,000 invested in Stock X and $50,000 invested in Stock Y. Both stocks have an expected return of 15%, betas of 1.6, and standard deviations of 30%. Which of the following statements best describes the characteristics of your 2-stock portfolio?
A. Your portfolio has a standard deviation less than 30%, and its beta is greater than 1.6.
B. Your portfolio has a beta equal to 1.6, and its expected return is 15%.
C. Your portfolio has a beta greater than 1.6, and its expected return is greater than 15%.
D. Your portfolio has a standard deviation greater than 30% and a beta equal to 1.6.
E. Your portfolio has a standard deviation of 30%, and its expected return is 15%.
Answer: B
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Answer the following statements true (T) or false (F)
1. Comprehensive listening is more demanding than critical listening because comprehensive requires both listening to the message and analyzing its content. 2. Critical listening requires offering empathy and support to another person. 3. The key to appreciative listening is putting aside biases against what is being shared. 4. Appreciative listening does not necessarily involve a communication exchange with another person. 5. HIRIER is the acronym for the six-step process of hearing.
Describe the difference between performance management and performance appraisals.
What will be an ideal response?
Which of the following statements about team-based management is least accurate?
A) Many companies use cross-functional teams to empower employees and boost their involvement in decision making. B) When individuals on teams don't share the same background or training, working relationships can become strained. C) Some organizations form ad-hoc teams that solve particular problems and then disband once they have accomplished their objectives. D) Companies that use team-based management prefer to train employees in teamwork skills rather than hire new workers who already possess these skills.
Under Rule 10b-5, if a noninsider (the tippee) receives material nonpublic information from an
insider (the tipper), the tippee: A) May use it to make a profit by buying or selling that company's stock. B) Must disclose that information. C) Must abstain from trading in any and all stock. D) May use it to make a profit by buying or selling that company's stock, only if the tipper voluntarily disclosed the nonpublic information. E) Must either abstain from trading in that company's stock or disclose the information to the person he is trading with.