Question
Some of a portfolio consists of stock A, which has an expected return of 15.60% and a standard deviation of returns of 21.99%, and the
Some of a portfolio consists of stock A, which has an expected return of 15.60% and a standard deviation of returns of 21.99%, and the rest of the portfolio consists of stock B, which has an expected return of 15.60% and a standard deviation of returns of 21.99%. If the returns of stock A and stock B do not move perfectly together in the same direction by the same relative amount, then which one of the following assertions is true? Assume that the portfolio has at least some stock A and some stock B.
| The expected return of the portfolio is 15.60% and the standard deviation of the portfolio is not 21.99 | ||
| The expected return of the portfolio is not 15.60% and the standard deviation of the portfolio is 21.99 | ||
| The expected return of the portfolio is not 15.60% and the standard deviation of the portfolio is not 21.99 | ||
| The expected return of the portfolio is 15.60% and the standard deviation of the portfolio is 21.99 | ||
| The question can not be answered without more specific information on how much of the portfolio consists of stock A and how much consists of stock B |
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The Geography Of Finance
Authors: Gordon L. Clark, Darius Wójcik
1st Edition
0199213364, 978-0199213368
