Top Posters
Since Sunday
e
5
R
5
e
4
4
d
4
o
3
p
3
t
3
3
m
3
p
3
m
3
Home Q & A Board Other Fields Homework Help Business Finance
New Topic  
drwalkinboner drwalkinboner
wrote...
Go to Answer
Posts: 144
Rep: 0 0
9 months ago
Your portfolio consists of $100,000 invested in Stock X and $100,000 invested in Stock Y. Both stocks have an expected return of 18%, betas of 1.7, and standard deviations of 29%. The returns of the two stocks are independent, so the correlation coefficient between them is zero. Which statement best describes the characteristics of your two-stock portfolio?


▸

Your portfolio has a standard deviation greater than 29%, and its beta is equal to 1.7.



▸

Your portfolio has a beta equal to 1.7, and its expected return is 18%.



▸

Your portfolio has a standard deviation less than 29%, and its beta is greater than 1.7.



▸

Your portfolio has a beta greater than 1.7, and its expected return is greater than 18%.

Textbook 
Financial Management: Theory and Practice

Financial Management: Theory and Practice


Edition: 4th
Authors:
Read 50 times
1 Reply
Replies
Answer verified by a subject expert
dm408dm408
wrote...
#1
Posts: 147
Rep: 0 0
9 months ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

drwalkinboner Author
wrote...

9 months ago
This site is awesome
sadiewolf
wrote...

Yesterday
Thank you, thank you, thank you!
Shuqin
wrote...

2 hours ago
Correct Slight Smile TY
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  963 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 163
  
 84
  
 150
Your Opinion
Which of the following is the best resource to supplement your studies:
Votes: 292
Previous poll results: What percentage of nature vs. nurture dictates human intelligence?