Question
The following is the information about two securities: Security Return Standard Deviation Beta A 16% 20% 1.2 B 12% 25% 0.8 1. Which of A
The following is the information about two securities:
Security Return Standard Deviation Beta
A 16% 20% 1.2
B 12% 25% 0.8
1. Which of A and B has the higher total risk? Which has the higher systematic risk?
2. What is the value of systematic risk (beta) for a portfolio with 2/3 of the funds invested in A and 1/3 of the funds invested in B?
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
