Multiple Choice
A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 35%, while stock B has a standard deviation of return of 15%. The correlation coefficient between the returns on A and B is .45. Stock A comprises 40% of the portfolio, while stock B comprises 60% of the portfolio. The standard deviation of the return on this portfolio is ________.
A) 23%
B) 19.76%
C) 18.45%
D) 17.67%
Correct Answer:
Verified
Correct Answer:
Verified
Q8: The market value weighted-average beta of firms
Q9: Asset A has an expected return of
Q10: Lear Corp. has an expected excess return
Q11: You run a regression for a stock's
Q12: Rational risk-averse investors will always prefer portfolios
Q14: Which of the following statements is (are)
Q15: Consider two perfectly negatively correlated risky securities,
Q16: The risk that can be diversified away
Q17: Semitool Corp. has an expected excess return
Q18: On a standard expected return versus standard