Stock a Has a Beta of 1

question 129

Multiple Choice

Stock A has a beta of 1.2 and a standard deviation of 20%.Stock B has a beta of 0.8 and a standard deviation of 25%.Portfolio P has $200,000 consisting of $100,000 invested in Stock A and $100,000 in Stock B.Which of the following statements is CORRECT? (Assume that the stocks are in equilibrium. )

• A) Stock A's returns are less highly correlated with the returns on most other stocks than are B's returns.
• B) Stock B has a higher required rate of return than Stock A.
• C) Portfolio P has a standard deviation of 22.5%.
• D) More information is needed to determine the portfolio's beta.
• E) Portfolio P has a beta of 1.0.

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Culturally Congruent Care

Healthcare that is respectful of, and relevant to, the cultural needs and preferences of the patient.

Valued Life Patterns

Patterns of activities or behaviors that are highly regarded and prioritized by individuals or cultures, contributing to their sense of meaning and satisfaction in life.

Predetermined Criteria

Specific standards or benchmarks set in advance to measure performance or judge outcomes.

Professional Health Care System

An organized network of health care providers that delivers medical services to the population.