Stock A has an expected return of 10 percent and a standard deviation of 20 percent Stock Bhas an expected return of 12 percent and a standard deviation of 30 percent. The risk-free rate is 4.5 percent and the market risk premium is 6 percent. Assume that the market is in equilibrium. Portfolio P has 50 percent invested in Stock A and 50 percent invested in Stock B. The returns of Stock A and Stock B are independent of one another. (That is, their correlation coefficient equals zero.) Which of the following statements is most correct? O A Portfolio P's expected return is less than 11 percent O B. Portfolio P's standard deviation is less than 25 percent Stock B's beta is 1.25 D. Statements and care correct E. All of the statements above are correct. Reset Selection Mark for Review What's This