Investors invest equally in stock A, and stock B. The standard deviation of A is 0.3;standard deviation of B is 45%.No correlation between stocks.The portfolio risk a. 0.27 b. 0.027 c. 23% d. 0.0731

Stock A has a variance of 0.04. The covariance between this stock and stock B = 0.015, the two stocks almost move together, then stock B has a risk equal to

a.

0.75

b.

0

c.

1

d.

0.375

Stock A has P/E 15; Stock B has P/E= 60. Investor expect

a.

Stock A has stronger growth

b.

Company B is better than company A

c.

Stock A is more expensive

d.

Company A is better than Company B