Question
The two stocks have a correlation coefficient of +0.6. Your portfolio consist of 50% A and 50% B. Which of the following statement is correct?
The two stocks have a correlation coefficient of +0.6. Your portfolio consist of 50% A and 50% B. Which of the following statement 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%
the portfolio's beta is less than 1.2.
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Contemporary Auditing Real Issues And Cases
Authors: Michael C. Knapp
8th Edition
0538466790, 9780538466790
