Stock As expected return is 15% and its standard deviation is 5%. Which of the...
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Stock As expected return is 15% and its standard deviation is 5%. Which of the following statements is correct?
| a. | There is a 68% chance that Stock As realized returns will be between 10% and 20%. |
| b. | There is a 95% chance that Stock As realized returns will be between 10% and 20%. |
| c. | If an investor holds only Stock A and does not own any other assets, then this investor is rational. |
| d. | Forming a two-stock portfolio by adding a negatively correlated second stock will make beta the relevant measure of this portfolios risk exposure. |
| e. | None of the above statements are correct. |
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