You invest 80% of your money in stock A and 20% in stock The standard deviation of the returns on stock A = 15% and on stock B = 20%. The portfolio standard deviation = 16%. Forming a portfolio of these two stocks has reduced risk in this case has increased risk in this case all of the above are possible none of the above You has a portfolio that contained 3 stocks (A, B, and C). The Betas are, respectively, 0.7, 1.1, and 1.3. You sold off your investment in B and replaced it with stock D, which has a Beta = 0.9. The required return on your portfolio rose fell won't change you can't tell what happens to the required return on the portfolio none of the above (suppose the risk-rate of return (R_xy) = 0 and the expected return on the market as a whole (R_m) - 10%. A stock with a Beta - 1.2 will have a required rate of return 10% 20% 1.2% 12% you need more information to determine r Assume the required (minimally acceptable) annual return on an investment = 4%, the expected return on the market as a whole (R_M) = 10%, and the risk-free rate (R_rp) = 4%. The Beta of this investment must be 1 2 .5 0 none of the above You have invested all of your savings in a portfolio of 50 pharmaceutical stocks. Overall, you are very well diversified not sufficiently diversified over-diversified all of the above c0 none of the above a corporation's optimum capital structure occurs when leverage is at the highest possible level occurs when leverage = 0 occurs when leverage involves a mix of about 25% debt, 75% equity occurs when there is a balance between the value added by interest tax shields and the value lost by costs of financial distress none of the above