User Account

All Pages

Problem regarding the standard deviation

Assignment Help Finance Basics
Reference no: EM131412637

Portfolio P has $200,000 consisting of $100,000 invested in Stock A and $100,000 in Stock B. Stock A has a beta of 1.2 and a standard deviation of 20%. Stock B has a beta of 0.8 and a standard deviation of 25%. Which of the following statements is CORRECT?

  • Stock B has a higher required rate of return than Stock A.
  • Portfolio P has a beta of less than 1.0.
  • More information is needed to determine the portfolio's beta.
  • Portfolio P has a beta of 1.0.

Reference no: EM131412637

Questions Cloud

Changes occur in the business environment : Describe the forecasting process an organization would use. As changes occur in the business environment, how are forecasts updated and communicated to the public. What might happen to a management team that persistently has inaccurate forecasts? ..
Translate statements into symbolic form- harvard and baylor : Translate the following statements into symbolic form using capital letters to represent affirmative English statements.-Both Harvard and Baylor have medical schools.
Write a script to simulate the draw of the numbers : Superimpose this data on the graph of P(t). Plot the data as discrete circles (i.e., do not join them with lines) as shown in Figure 9.16.
Analyze an approach to counseling forensic clients : Choose and analyze an approach to counseling forensic clients.Include a discussion of the basic tenets of the approach you have selected and also include the curative factors of this approach.Describe the effectiveness of their use with the forensi..
Problem regarding the standard deviation : Portfolio P has $200,000 consisting of $100,000 invested in Stock A and $100,000 in Stock B. Stock A has a beta of 1.2 and a standard deviation of 20%. Stock B has a beta of 0.8 and a standard deviation of 25%. Which of the following statements is..
Compute the expected value of perfect information : A small building contractor has recently experienced two successive years in which work opportunities exceeded the firm's capacity. The contractor must now make a decision on capacity for next year. Determine the expected profit of each alternative. ..
Translate statements into symbolic form- rosewood fragrance : Translate the following statements into symbolic form using capital letters to represent affirmative English statements.- Chanel has a rosewood fragrance if Lanvin does.
Critical reflection on bartleby : Another form of proper analytical development, complexity refers to the depth of engagement with the primary source and the degree to which the writer develops his or her own position.
Identify the topic- the offender population : Identify- the topic; the offender population; and the treatment approach.Identify the typical assessment techniques used to evaluate this offender population.Identify the special characteristics of this offender population and the implications that..

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd