+1-415-670-9189
info@expertsmind.com
Standard deviation-portfolio-stock beta
Course:- Financial Management
Reference No.:- EM13942972





Assignment Help >> Financial Management

In isolation, stock A’s standard deviation ( σ ) = 10%, stock B’s σ = 15%, and stock C’s σ = 20%. In a portfolio, stock A’s beta ( β ) = 2, stock B’s β = 1.5, and stock C’s β = 1.0. Which of the following is true?

In isolation, B is riskier than C, in a portfolio, C is riskier than A, in a portfolio, B is riskier than C, in isolation, A is riskier than B




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Financial Management) Materials
The Cracker Barrel has a beta of 0.98, a dividend growth rate of 3.2 percent, a stock price of $33 a share, and an expected annual dividend of $1.06 per share next year. The m
A company offers a 6% coupon bond with a yield-to-maturity of 6.5% compounded semi-annually. The bond pays interest semi-annually and matures in twelve years. If the par value
You own a portfolio that has $2,100 invested in Stock A and $3,050 invested in Stock B. If the expected returns on these stocks are 10 percent and 14 percent, respectively, wh
Capital Structure- Kirsten Neal is interested in purchasing a new house given that mortgage rates are at a historical low. Her bank has specified rules regarding an applicant’
A borrower is considering a 1-year adjustable rate mortgage of $250,000 that starts at 2.5%, 30 year amortization. The margin is 2.25%. The annual change caps are 2% per year.
A forklift can be purchased for $30,000. The market value of the forklift decreases by 20% of the previous year’s value for 2 years, and then by 15% in years 3 through 10. Mai
BBB-rated Corporate bond has a yield to maturity of 5.0%. A U.S. Treasury security has a yield of 3.0%. These yields are quoted as APRs with semiannual compounding. Both bonds
Describe the scope of Public Finance. Explain different philosophical approaches to the role of the government. Describe the size of the government sector in the U.S. List and