Question
Which of the following is correct? a.The expected return of a stock portfolio is the weighted average of the expected returns of the stocks in
Which of the following is correct?
a.The expected return of a stock portfolio is the weighted average of the expected returns of the stocks in the portfolio.
b.The standard deviation of the returns of a portfolio is the weighted average of the standards deviations of the assets in the portfolio.
c.The standard deviation of the returns of a portfolio is less than the weighted average of the standards deviations of the assets in the portfolio if < 1.
d.The beta of a portfolio is less than the weighted average of the betas of the assets in that portfolio.
e.More than one of the answers are correct.
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Case Studies in Finance Managing for Corporate Value Creation
Authors: Robert F. Bruner, Kenneth Eades, Michael Schill
7th edition
007786171X, 77861711, 978-0077861711
