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Consider the following information for three stocks, A, B, and C. The stocks' returns are positively but not perfectly positively correlated with one another, i.e.,

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Consider the following information for three stocks, A, B, and C. The stocks' returns are positively but not perfectly positively correlated with one another, i.e., the correlations are all between 0 and 1 8 points Save Answe Expected Standard Stock Return Deviation Beta A 10% 20% 1.0 B 10% 10% 1.0 12% 12% 1.4 Portfolio AB has half of its funds invested in Stock A and half in Stock B. Portfolio ABC has one third of its funds invested in each of the three stocks. The risk-free rate is 5%, and the market is in equilibrium, so required mal aspected Femme Which of the following statements is CORRECT? a. Portfolio AB's required return is greater than the required return on Stock A. b. Portfolio AB has a standard deviation of 20%. O c. Portfolio ABC's expected return is 10.66667%. d. Portfolio AB's coefficient of variation is greater than 2.0. O e. Portfolio ABC has a standard deviation of 20%. A Moving to the next question prevents changes to this answer Kollo Enterprises has a beta of 0.90, the real risk-free rate is 2.00%, investors expect a 3.00% future inflation rate, and the market risk premium is 4.70%. What is Kollo's required rate of return? Do not round your intermediate calculations. O a. 8.29% O b.6.47% O c. 7.30% O d.6.96% O e. 9.23% Amram Company's current ratio is 2.0. Considered alone, which of the following actions would lower the current ratio? O a. Borrow using short-term notes payable and use the proceeds to reduce long-term debt. O b.Use cash to reduce short-term notes payable. O c. Borrow using short-term notes payable and use the proceeds to reduce accruals. O d. Use cash to reduce accruals. O e. Use cash to reduce accounts payable

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