Portfolio P has $200,000 consisting of $100,000 invested in Stock A

Portfolio P has $200,000 consisting of $100,000 invested in Stock A

Question # 00401859 Posted By: katetutor Updated on: 10/09/2016 01:42 AM Due on: 10/09/2016
Subject Finance Topic Finance Tutorials:
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Portfolio P has $200,000 consisting of $100,000 invested in Stock A and $100,000 in Stock B. Stock A has a beta of 1.2 and a standard deviation of 20%. Stock B has a beta of 0.8 and a standard deviation of 25%. Which of the following statements if CORRECT?

a. Stock B has a higher required rate of return than Stock A.

b. portfolio P has a beta of less than 1.0

c. more information is needed to determine the portfolios's beta

d. Portfolio P has a beta of 1.0.

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    Tutorial # 00397096 Posted By: katetutor Posted on: 10/09/2016 01:42 AM
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