Stocks a and B Each Have an Expected Return of 15%,a

question 95

Multiple Choice

Stocks A and B each have an expected return of 15%,a standard deviation of 20%,and a beta of 1.2.The returns on the two stocks have a correlation coefficient of +0.6.You have a portfolio that consists of 50% A and 50% B.Which of the following statements is CORRECT?

• A) The portfolio's beta is less than 1.2.
• B) The portfolio's expected return is 15%.
• C) The portfolio's standard deviation is greater than 20%.
• D) The portfolio's beta is greater than 1.2.
• E) The portfolio's standard deviation is 20%.

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Definitions:

Renal Column

Parts of the kidney's tissue that extend between the pyramids, containing blood vessels and urinary tubes, and serving as a supportive structure for the cortex.

Renal Artery

A blood vessel that supplies oxygenated blood to the kidneys.

Ureter

A tube that carries urine from the kidney to the bladder.

Renal Corpuscles

The filtering structures in the kidneys, each consisting of a glomerulus and a Bowman's capsule.