The standard deviation of return on investment A is 24%, while the standard deviation of return on investment B is 19%. If the correlation coefficient between the returns on A and B is 0.263, the covariance of returns on A and B is __________.

Multiple Choice

• 0.2082

• 0.0120

• 0.0120

• 0.2082

A stock has a correlation with the market of 0.54. The standard deviation of the market is 30%, and the standard deviation of the stock is 33%. What is the stock's beta?

Multiple Choice

• 1.68

• 0.59

• 0.49

• 0.41

Stock A has a correlation with the market of 0.45. The standard deviation of the market is 21%, and the standard deviation of the stock is 35%. What is the stock's beta?

Multiple Choice

• 1

• 0.75

• 0.60

• 0.55

An investor can design a risky portfolio based on two stocks, A and B. The standard deviation of return on stock A is 20%, while the standard deviation on stock B is 15%. The correlation coefficient between the returns on A and B is 0%. The rate of return for stocks A and B is 20% and 10% respectively. The standard deviation of return on the minimum-variance portfolio is ___________.

Multiple Choice

• 0%

• 6%

• 12%

• 17%

Which of the following is a correct expression concerning the formula for the standard deviation of returns of a two-asset portfolio where the correlation coefficient is positive?

Multiple Choice

• 2P < w21 21 + w22 22P2 < w12 12 + w22 22

• 2P = w21 21 + w22 22P2 = w12 12 + w22 22

• 2P < w21 21 w22 22P2 < w12 12 - w22 22

• 2P > w21 21 + w22 22