6. K Library Resources Version A 5. You have developed the following data on a 2-stock portfolio. Which scenario seems to be out of place? Scenario Expected return L. Correlation 0.95 0.25 M. Correlation -0.35 N. Correlation-0.25 O. Correlation = 0.00 - -0.80 P. Correlation 0.25 0.25 0.25 0.25 A) M B) N D) P Standard deviation 0.05 0.41 0.20 0.15 0.07 FIN 350, 24 E) L You have developed the following data to examine the impact of portfolio diversification. Which scenario seems to be out of place? # of stocks in the portfolio Diversifiable Risk Market Risk L. 2 stocks 0.15 0.20 M. 20 stocks 0.13 0.20 N. 30 stocks 0.18 0.20 O. 60 stocks 0.08 0.20 P. 100 stocks 0.01 0.20 A) L B) N C) M D) O E) P bul bood W Avilasq 13.09 You have collected the following data. Based on CAPM, which scenario seems to be out of place? 7. Stock Required return X 0.25 B 0.16 H 0.12 Z 0.08 Q 0.05 A) Q B) B C) X D) H E) Z Standard deviation 0.05 0.41 0.20 0.15 0.00 Market Beta 0.98 0.45 0.20 1.21 0.00 A (E Labrisb love si to om man was bogg arlord (0 an aloqa (3 a bocheted a los mini did b yawa boilizsvib yows boitiz ovib od nau rows botiervil bellavi od we baitiovib od doch M (A Jelah sides daty (C ( valenc 24 00-362- Page 2 of 6 CD] CE]