porlfolio p consists of two stocks: 50% is invested in stock A and 50% is invested in stock B. stock A has a standard deviation of 25% and a beta of 1.2, and stock B has a standard deviation of 35% and a beta of 0.80. the correlation between thses stocks is 0.4. A. what is the standard deviation of portfolio P ? b. what is the beta od portfolio P ? c. which stock is riskeir to a diversified investor?

porlfolio p consists of two stocks: 50% is invested in stock A and 50% is invested in stock B. stock A has a standard deviation of 25% and a beta of 1.2, and stock B has a standard deviation of 35% and a beta of 0.80. the correlation between thses stocks is 0.4. A. what is the standard deviation of portfolio P ? b. what is the beta od portfolio P ? c. which stock is riskeir to a diversified investor?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter3: Risk And Return: Part Ii

Section: Chapter Questions

Problem 3P: Two-Asset Portfolio Stock A has an expected return of 12% and a standard deviation of 40%. Stock B...

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