Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. questions some of a portfolio consists of stock a

QUESTIONS Some of a portfolio consists of stock A which has an expected return of...

70.2K

Verified Solution

Question

Finance

image
QUESTIONS Some of a portfolio consists of stock A which has an expected return of 16.8% and a standard deviation of returns of 21.7%, and the rest of the portfolio consists of stock B, which has an expected return of 16.8% and a standard deviation of returns of 21.7%. If the returns of stock A and stock B do not move perfectly together in the same direction by the same relative amount, then which one of the following assertions is true? Assume that the portfolio has at least some stock A and some stock B. a. The expected return of the portfolio is 16.8% and the standard deviation of the portfolio is 21.7% b. The expected return of the portfolio is 16.8% and the standard deviation of the portfolio is not 21.7% c. The expected return of the portfolio is not 16.8% and the standard deviation of the portfolio is 21.7% d. The expected return of the portfolio is not 16.8% and the standard deviation of the portfolio is not 21.7% Oe. The question can not be answered without more specific information on how much of the portfolio consists of stock A and how much consists of stock B

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Statistics
1.2K views

The assets​ (in billions of​ dollars) of the four wealthiest people in a particular country are...

Programming
1.2K views

A class variable is visible to and shared by all instances of a class. How would...

Physics
1.2K views

The half life of a radioactive substance is 20 minutes The approximate time interval 1...

Geometry
1.2K views

O A 1 a In circle O right triangle OBC is formed where mzB 90...

Geometry
1.2K views

25 What is the length of AD Express the answer in terms of B A...

Basic Math
1.2K views

Rewrite sin 2 sin 1 6 sin 2 sin 2 6 0 as an algebraic...

Basic Math
1.2K views

Which sentence combines these two sentences using a coordinating conjunction? The fountain at the park...

Calculus
1.2K views

Sketch a graph of a function f that satisfies the given values f 2 is...

Accounting
1.2K views

eBook Show Me How Question Content Area Direct Materials and Direct Labor Variance Analysis Shasta...

Accounting
1.2K views

Assume that Minneapolis' sales by major market are Medical $330,000 1008 $220,000 100% $110,000 100%...

Accounting
1.2K views

For each of the following accounts, indicate the effect of a debit or a credit...

Accounting
1.2K views

VAP Company's balance sheet shows: Common stock, $20 par $4,000,000 Paid-in capital in excess of...