Question
In: Finance
stock a has a beta of 1.6 and a standard deviation of 25%. stock b has...
stock a has a beta of 1.6 and a standard deviation of 25%. stock b has a beta of 1.4 and a standard deviation of 20%. portfolio ab was created by investing in a combination of stocks a and b. portfolio ab has a beta of 1.25 and a standard deviation of 18%. which of the following statements is correct?
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Stock A has more market risk than Portfolio AB. |
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Stock A has more market risk than Stock B but less stand-alone risk. |
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Portfolio AB has more money invested in Stock A than in Stock B. |
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Portfolio AB has the same amount of money invested in each of the two stocks. |
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Portfolio AB has more money invested in Stock B than in Stock A. |
Solutions
jeff jeffy answered 1 year agoRelated Solutions
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The standard deviation of the market-index portfolio is 45%. Stock A has a beta of 1.20...
The standard deviation of the market-index portfolio is 45%.
Stock A has a beta of 1.20 and a residual standard deviation of
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Round your answer to 4 decimal places.)
b. Calculate the total variance for an increase of
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