Multiple Choice
Suppose Stock M has an expected return of 10%, a standard deviation of 15%, and a Beta of 0.6 while Stock N has an expected return of 20%, a standard deviation of 25% and a beta of 1.04, and the correlation between the two stocks is 0.50. What is the expected return for a portfolio with 80% invested in Stock M and 20% invested in Stock N?
A) 12%
B) 14%
C) 16%
D) 18%
Correct Answer:
Verified
Correct Answer:
Verified
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