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Fiesta28 [93]
3 years ago
13

Consider the following information for three stocks, A, B, and C. The stocks' returns are positively but not perfectly positivel

y correlated with one another, i.e., the correlations are all between 0 and 1. Stocks Expected Stock Return Standard Deviation BetaA 10% 20% 1.0B 10% 10% 1.0C 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?a. Portfolio AB has a standard deviation of 20%.b. Portfolio AB's coefficient of variation is greater than 2.0.c. Portfolio AB's required return is greater than the required return on Stock A.d. Portfolio ABC's expected return is 10.66667%.e. Portfolio ABC has a standard deviation of 20%.
Business
1 answer:
rjkz [21]3 years ago
5 0

Answer:

The answer is letter D.

Explanation:

The correct statement is  Portfolio ABC's expected return is 10.66667%

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Answer:

Zero- there is a $10 Million exemption equivalent ( d )

Explanation:

Annual exemption to be ignored = $15000

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3 years ago
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Answer:

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Explanation:

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Factor earnings received by the employers of factors of production decides spending capacity of the people. This helps producers to identify the consumers for whom goods could be produced in larger or smaller quantities. Price mechanism works well only if competition exists and natural flow of demand and supply of goods is not disturbed artificially.

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