Question 211.25 pts

Assume that you have a portfolio of two stocks , X and Y. if the risk of stock X is 1.2 and the risk of stock Y is 4, then the return on stock Y should be

Group of answer choices

Less than the return on stock X

We Cannot tell

Greater than the return on stock X

Equal to the return on stock S

Flag question: Question 22

Question 221.25 pts

If the portfolio in the previous question is well diversified and stocks are strongly negatively related , then the risk for the portfolio will be

Group of answer choices

We cannot tell

Greater than the risk of stock Y (i.e. greater than 4)

Greater than the risk of stock X (i.e. greater than 1.2) but less than the risk on Stock Y (i.e. less than 4

Less than the risk of stock X (i.e. less than 1.2)