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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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4 years ago
What is the simplest form of the ratio 11 : 16?
Sever21 [200]
Hello My Friend!

11/16=0.6875&#10;&#10;11 : 16 = 0.6875 : 1

...Simplest form of the ratio 11 : 16 IS 11 : 16

In Other Words, 11 is prime so that is already in simplest form...It is already at it's simplest form.

I Hope my answer has come to your Help. Thank you for posting your question here in Brainly.We hope to answer more of your questions and inquiries soon. Have a nice day ahead! :)

(Ps. Mark As Brainliest IF Helped!)

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5 0
3 years ago
Which decision-making models best describe how decision-making takes place in the research and development laboratory of a major
g100num [7]

Answer:

Garbage-can model

Explanation:

The decision-making models that best describe how decision-making takes place in the research and development laboratory of a major drug company is the Garbage-can model, this is because the research and development laboratory is a complex and unstable environment

decisions taken in a research laboratory are mainly unpredictable and uncertain as most solution are turned in problems first before another solution can be created  

4 0
4 years ago
I need help! It’s for a test.
Vilka [71]
I think is D



Is the most obvious out of the others
7 0
3 years ago
Read 2 more answers
An asset is purchased by a calendar or fiscal year firm for $60,000 on October 1, 1997. The asset has a useful life of four year
emmasim [6.3K]

Answer:

1. True

Explanation:

The computation of the depreciation for 1998  under the double declining balance method is shown below:

First we have to find the depreciation rate which is

= One ÷ useful life

= 1 ÷ 4

= 25%

Now the rate is double So, 50%

In year 1, the original cost is $60,000, so the depreciation is $7,500 after applying the 50% depreciation rate  and the 3 months

And, in year 2, the depreciation expense is

= ($60,000 - $7,500) × 50%

= $26,250

5 0
4 years ago
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