Stocks a and b are quite similar: each has an expected return of 12%, a beta of 1.2, and a standard deviation of 25%. the returns on the two stocks have a correlation of 0.6. portfolio p has 50% in stock a and 50% in stock b. which of the following statements is correct? a. portfolio p has a standard deviation that is greater than 25%.b. portfolio p has an expected return that is less than 12%.c. portfolio p has a standard deviation that is less than 25%.d. portfolio p has a beta that is less than 1.2.e. portfolio p has a beta that is greater than 1.2.

The returns on the common stock of maynard cosmetic specialties are quite cyclical. in a boom economy, the stock is expected to return 22 percent in comparison to 9 percent in a normal economy and a negative 14 percent in a recessionary period. the probability of a recession is 35 percent while the probability of a boom is 10 percent. what is the standard deviation of the returns on this stock?

On july 1, oura corp. made a sale of $ 450,000 to stratus, inc. on account. terms of the sale were 2/10, n/30. stratus makes payment on july 9. oura uses the net method when accounting for sales discounts. ignore cost of goods sold and the reduction of inventory. a. prepare all oura's journal entries. b. what net sales does oura report?

6carla would like to buy a dress, a dresser for her bedroom, and a home theater system. she has one month's worth of living expenses in her emergency fund. carla decides to save for the home theater system. did carla make the right decision? why or why not? a. yes; her emergency fund is full and the other items will probably be less expensive. b. yes; she could save more for her emergency fund, but the home theater will be harder to save for. c. no; she should save more for her emergency fund because she has saved less than the recommended amount. d. no; she should have bought the dress and dresser first because she could afford them right away. reset next