Stocks a and B Each Have an Expected Return of 12%,a

question 147

Multiple Choice

Stocks A and B each have an expected return of 12%,a beta of 1.2,and a standard deviation of 25%.The returns on the two stocks have a correlation of +0.6.Portfolio P has 50% in Stock A and 50% in Stock B.Which of the following statements is CORRECT?

• A) Portfolio P has a beta that is greater than 1.2.
• B) Portfolio P has a standard deviation that is greater than 25%.
• C) Portfolio P has an expected return that is less than 12%.
• D) Portfolio P has a standard deviation that is less than 25%.
• E) Portfolio P has a beta that is less than 1.2.

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Definitions:

Job Rotation

Job rotation is a workforce management practice where employees are moved between various jobs or tasks to learn new skills, prevent job burnout, and promote cross-functional understanding.

Employee Development Plans

Structured programs or strategies designed to enhance an employee's skills and competencies for career advancement.

Learning And Development Activities

Programs and initiatives aimed at improving employee skills, knowledge, and competencies to enhance performance and career progression.

Link Competencies

The process of connecting specific skills, knowledge, and behaviors to business strategies, roles, and outcomes.