Business, 09.10.2019 00:00 nikitakhrabkov123

Your portfolio consists of $50,000 invested in stock x and $50,000 invested in stock y. both stocks have an expected return of 15%, betas of 1.6, and standard deviations of 30%. the returns of the two stocks are independent, so the correlation coefficient between them, rxy, is zero. which of the following statements best describes the characteristics of your 2-stock portfolio?
a. your portfolio has a beta greater than 1.6, and its expected return is greater than 15%.b. your portfolio has a beta equal to 1.6, and its expected return is 15%.c. your portfolio has a standard deviation of 30%, and its expected return is 15%.d. your portfolio has a standard deviation less than 30%, and its beta is greater than 1.6.e. your portfolio has a standard deviation greater than 30%, and a beta equal to 1.6.

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 19:00

If a company’s employees are angry about their work, a visiting auditor may also become agitated, illustrating the power of

Answers: 1

Answer

Business, 21.06.2019 19:40

Which of the following is false regarding the links between jit and quality? a. jit increases the cost of obtaining good quality. b. as quality improves, fewer inventory buffers are needed; in turn, jit performs better. c. jit reduces the number of potential sources of error by shrinking queues and lead times. d. inventory hides bad quality; jit immediately exposes it. e. if consistent quality exists, jit allows firms to reduce all costs associated with inventory.

Answers: 3

Answer

Business, 21.06.2019 23:00

Employees of dti, inc. worked 1,600 direct labor hours in january and 1,000 direct labor hours in february. dti expects to use 18,000 direct labor hours during the year, and expects to incur $22,500 of worker’s compensation insurance cost for the year. the cash payment for this cost will be paid in april. how much insurance premium should be allocated to products made in january and february?

Answers: 1

Answer

Business, 22.06.2019 19:50

Managers in a firm hired to improve the firm's profitability and ultimately the shareholders' value will add to the overall costs if they pursue their own self-interests. what does this best illustrate? a. diseconomies of scale b. principal-agent problem c. experience-curveeffects d. information asymmetries

Answers: 1

Answer

You know the right answer?

Your portfolio consists of $50,000 invested in stock x and $50,000 invested in stock y. both stocks...

Questions