Question
Some of a portfolio consists of stock A, which has an expected return of 17.55% and a standard deviation of returns of 20.68%, and the
Some of a portfolio consists of stock A, which has an expected return of 17.55% and a standard deviation of returns of 20.68%, and the rest of the portfolio consists of stock B, which has an expected return of 17.55% and a standard deviation of returns of 20.68%. 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 17.55% and the standard deviation of the portfolio is not 20.68 | ||
| The expected return of the portfolio is not 17.55% and the standard deviation of the portfolio is 20.68 | ||
| The expected return of the portfolio is 17.55% and the standard deviation of the portfolio is 20.68 | ||
| The expected return of the portfolio is not 17.55% and the standard deviation of the portfolio is not 20.68 | ||
| 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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Financial Sector Reform And Privatization In Transition Economies
Authors: John Doukas, Victor Murinde, Clas Wihlborg
1st Edition
044482653X, 9780444826534
