Stocks A and B each have an expected return of

15%

, a standard deviation of

20%

, and a beta of 1.2 . The returns on the two stocks have a correlation coefficient of +0.6 . Your portfotio consists of

50%A

and

50%B

. Which of the following statements is CORRECT?\ a. The portfolio's expected return is

15%

.\ b. The portfolio's standard deviation is greater than

20%

.\ c. The portfolio's beta is greater than 1.2.\ d. The portfolio's standard deviation is

20%

.\ e. The portfolio's beta is less than 1.2.

10. Stocks A and B each have an expected return of 15%, a standard deviation of 20%, and a beta of 1.2 . The returns on the two stocks have a correlation coefficient of +0.6 . Your portfotio consists of 50%A and 50%B. Which of the following statements is CORRECT? a. The portfolio's expected return is 15%. b. The portfolio's standard deviation is greater than 20%. c. The portfolio's beta is greater than 1.2. d. The portfolio's standard deviation is 20%. e. The portfolio's beta is less than 1.2. 10. Stocks A and B each have an expected return of 15%, a standard deviation of 20%, and a beta of 1.2 . The returns on the two stocks have a correlation coefficient of +0.6 . Your portfotio consists of 50%A and 50%B. Which of the following statements is CORRECT? a. The portfolio's expected return is 15%. b. The portfolio's standard deviation is greater than 20%. c. The portfolio's beta is greater than 1.2. d. The portfolio's standard deviation is 20%. e. The portfolio's beta is less than 1.2