Stock a has a beta of 1.2 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?
options:
a) portfolio ab has more money invested in stock b than in stock a.
b) stock a has more market risk than stock b but less stand-alone risk.
c) portfolio ab has more money invested in stock a than in stock b.
d) portfolio ab has the same amount of money invested in each of the two stocks.
e) stock a has more market risk than portfolio ab.

You wish to buy a cabin in 15 years. today, the cabin costs $150,000. you believe the price of the cabin will inflate at 4% annually. you want to invest a single amount of money (lump sum) today and have the money grow to equal the future purchase price of the cabin 15 years from now. if you can earn 10% annually on your investments, how much do you need to invest now, in order to be able to purchase the cabin?

Agovernment receives a gift of cash and investments with a fair value of $200,000. the donor specified that the earnings from the gift must be used to beautify city-owned parks and the principal must be re-invested. the $200,000 gift should be accounted for in which of the following funds? a) general fund b) private-purpose trust fund c) agency fund d) permanent fund

scenario: hawaii and south carolina are trading partners. hawaii has an absolute advantage in the production of both coffee and tea. the opportunity cost of producing 1 pound of tea in hawaii is 2 pounds of coffee, and the opportunity cost of producing 1 pound of tea in south carolina is 1/3 pound of coffee. which of the following statements is true? a. south carolina should specialize in the production of both tea and coffee. b. hawaii should specialize in the production of tea, whereas south carolina should specialize in the production of coffee. c. hawaii should specialize in the production of coffee, whereas south carolina should specialize in the production of tea. d. hawaii should specialize in the production of both tea and coffee.