FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Berkshire Hathaway stock has a standard deviation of 22% and a beta of 1.4. Microsoft stock has standard deviation 31% and beta of 1.2. Which

image text in transcribed

Berkshire Hathaway stock has a standard deviation of 22% and a beta of 1.4. Microsoft stock has standard deviation 31% and beta of 1.2. Which of these statements is true? Microsoft is a riskier investment for a diversified investor. Microsoft has less total and systematic risk. Microsoft has less total risk; Berkshire has less systematic risk. None of the above

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sport Finance

Sport Finance

Authors: Gil Fried, Timothy D. DeSchriver, Michael Mondello

4th Edition

1492559733, 978-1492559733

More Books

Students also viewed these Finance questions

Question

★★★★★
Use Appendix Table A.4 to find the values of x that satisfy the following equations: (a) P(0.109 5.35) = 0.01 (d) P(0.115 Answered: 1 week ago

Answered: 1 week ago

Question

★★★★★
Evaluate the iterated integral. Jo Jo 1-2 So ze" dx dz dy

Answered: 1 week ago

Question

★★★★★
Explain the processes involved in problem solving and the factors that can interfere with successful problem solving.

Answered: 1 week ago

Question

★★★★★
Solutions Plus is an industrial chemicals company that produces specialized cleaning fluids and solvents for a wide variety of applications. Solutions Plus just received an invitation to submit a bid...

Answered: 1 week ago

Question

★★★★★
Calculate the profitability ratios of Blur Corp. in the following table. Convert all calculations to a percentage rounded to two decimal places. Ratio Operating margin Profit margin Return on total...

Answered: 1 week ago

Question

★★★★★
text file (.txt) called input.txt that contains the following data: Jack, 20.0, 35.0, 100 Bob, 30.0, 40.0, 150 The file format of the input.txt file is a comma delimited file and is defined as...

Answered: 1 week ago

Question

★★★★★
Question two Ever since he was a small boy Nephew has dreamed of owning a car repair business. Following high school, Nephew borrows money from Bankco and enrolls and pays his own way through...

Answered: 1 week ago

Question

★★★★★
To deal with the continuous disappointing news in the job market, government increased spending. The short-run effect of the policy is ________ a.economic expansion and lower interest rate. b.no...

Answered: 1 week ago

Question

★★★★★
This house is new and how to set up the network in this house? CLOSET BATH 3 CLOS MASTER BATH SITTING 8'6"X7'0" BALCONY 10'4"x5'8" MASTER WARDROBE MASTER SUITE 18'0"x14'0" UTILITY LIFT DEN...

Answered: 1 week ago

Question

★★★★★
A U.S. parent has a subsidiary in Canada. Its account balances are measured in Canadian dollars. If the parent's reporting currency is the U.S. dollar and the subsidiary's functional currency is the...

Answered: 1 week ago

Question

★★★★★
Rome Restaurant has the opportunity to purchase a new pizza oven for their new line of pizzas. This oven has a cost of $60,000 and will yield the following cash flows: Year 1: $12,000 Year 2: $12,500...

Answered: 1 week ago

Question

★★★★★
Explain the potential advantages of e-learning for training. page 303

Answered: 1 week ago

Question

★★★★★
Choose appropriate evaluation design and training outcomes based on the training objectives and evaluation purpose. page 310

Answered: 1 week ago

Question

★★★★★
Design a training session to maximize learning. page 309

Answered: 1 week ago

Previous Question Next Question