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Business, 18.12.2019 20:31 hiiliohi6300

Stocks a and b each have an expected return of 15%, a standard deviation of 20%, and a beta of 1.2. the returns on the two stocks have a correlation coefficient of +0.6. you have a portfolio that consists of 50% a and 50% b. which of the following statements is correct?

a. the portfolio's expected return is 15%.
b. the portfolio's beta is greater than 1.2.
c. the portfolio's standard deviation is greater than 20%.
d. the portfolio's standard deviation is 20%.
e. the portfolio's beta is less than 1.2.

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Stocks a and b each have an expected return of 15%, a standard deviation of 20%, and a beta of 1.2....
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