Answer:
Consider the following information for three stocks, A, B, and C. The stocks' returns are positively but not perfectly positively correlated with one another, i.e., the correlations are all between 0 and 1. Expected Standard Stock Return Deviation Beta
A 10% 20% 1.0
B 10% 10% 1.0
C 12% 12%1.4
Portfolio AB has half of its funds invested in Stock A and half in Stock B. Portfolio ABC has one third of its funds invested in each of the three stocks. The risk-free rate is 5%, and the market is in equilibrium, so required returns equal expected returns. Which of the following statements is CORRECT?
Question 13 options:
a) Portfolio ABC's expected return is 10.66667% correct answer
. b) Portfolio AB has a standard deviation of 20%.
c)Portfolio ABC has a standard deviation of 20%.
d)Portfolio AB's required return is greater than the required return on Stock A.
e)Portfolio AB's coefficient of variation is greater than 2.0
Answer:
B. Commercial impracticability
Explanation:
Commercial impracticabilty occurs when the actions under a contract is impractical and cannot be accomplished or achieved. It is triggered when actions or performance of a contract by a party has become impracticable and hence unfeasible or maybe just too difficult or costly to accomplish. The best defense for the florist in this case is commercial impracticabilty as the disease sweeping through the type of rose Belinda ordered has made it difficult and costly to accomplish or achieve.
objectives of controls are of primary interest to an auditor performing a financial statement audit--- Accurate and reliable financial reporting.
What are the primary objectives of internal control?
The primary purpose of internal controls is to help safeguard an organization and further its objectives. Internal controls function to minimize risks and protect assets, ensure accuracy of records, promote operational efficiency, and encourage adherence to policies, rules, regulations, and laws.
What are the 5 internal controls in auditing?
There are five interrelated components of an internal control framework: control environment, risk assessment, control activities, information and communication, and monitoring.
Learn more about financing reports:
brainly.com/question/1618296
#SPJ4
7%, hope this helps!
•••
Caramelatte
<span>One
firm that is historically low and deals with negatively correlated stock
markets is Gold Extraction Companies. They are have very low correction with
overall stock markets. The basic reason for this low correlation is that, as
the stock market become bearish, investor sentiment becomes weak, due to which
most of the investors withdraw their money from stock market. Now once investor
has withdrawn the money from stock market , they search on safe investments
which will provide them good reruns, Gold is one of the investment which is
relatively safe and provide high returns. Thus withdrawn money from the share
market is invested in gold by investors. Thus Gold prices and companies related
to extraction of gold have very less correlation to the gold.</span>
