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Stocks A and B both have an expected return of 10% and a standard deviation of returns of 25%. Stock A has a beta of
Stocks A and B both have an expected return of 10% and a standard deviation of returns of 25%. Stock A has a beta of 0.8 and Stock B has a beta of 1.2. The correlation coefficient between the two stocks is 0.6. Portfolio P is a portfolio with 50% invested in Stock A and 50% invested in Stock B. Which of the following statements is CORRECT? O A. Portfolio P is the market portfolio. O B. Portfolio P would be considered riskier than Stock A but less risky than Stock B. O C. Portfolio P has a standard deviation of 25% and a beta of 1.0. O D. Portfolio P should have a lower expected return than Stock A
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