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Which of the following statements is CORRECT?
a. A stock with an above-average standard deviation must also have an above-average beta.
b. A two-stock portfolio will always have a lower standard deviation than a one-stock portfolio.
c. A two-stock portfolio will always have a lower beta than a one-stock portfolio.
d. A portfolio that consists of 40 stocks that are not highly correlated with "the market" will probably be less risky than a portfolio of 40 stocks that are highly correlated with the market, assuming the stocks all have the same standard deviations.
e. If portfolios are formed by randomly selecting stocks, a 10-stock portfolio will always have a lower beta than a one-stock portfolio
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Given r and t greater than zero, what is true concerning Lump Sum present and future value interest factors? present value interest factors are less than 1
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What is the key difference between the primary and secondary securities markets? Why are the trades that occur on the secondary market important to a firm’s management?
Bridget Morrow is a sophomore at a state college and is running out of money. Wanting to continue her education, Bridget is considering a student loan. Explain her options. How can she best to minimize her Byron cost and maximize her flexibility?
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