Stocks a and B Both Have an Expected Return of 10

question 21

Multiple Choice

Stocks A and B both have an expected return of 10% and a standard deviation of returns of 25%.Stock A has a beta of 0.8 and Stock B has a beta of 1.2.The correlation coefficient,r,between the two stocks is +0.6.Portfolio P has 50% invested in Stock A and 50% invested in B.Which of the following statements is CORRECT?

• A) Portfolio P has a standard deviation of 25% and a beta of 1.0.
• B) Based on the information we are given,and assuming those are the views of the marginal investor,it is apparent that the two stocks are in equilibrium.
• C) Portfolio P has more market risk than Stock A but less market risk than B.
• D) Stock A should have a higher expected return than Stock B as viewed by the marginal investor.
• E) Portfolio P has a coefficient of variation equal to 2.5.

Recognize and apply iteration techniques over data structures.

Grasp the concept of memory handling through deep and shallow copies in the context of data structures.

Understand the Dobzhansky-Muller model for genetic changes leading to speciation.

Describe the process and models of speciation including allopatric, sympatric, and polyploidy.

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Definitions:

Brain Abnormalities

Structural or functional deviations in the brain that may lead to various neurodevelopmental, psychiatric, or neurological conditions.

Supernatural Perspective

An approach that attributes phenomena or events to factors beyond the scientific understanding, often involving deities, spirits, or magic.

Black Magic

A form of magic or supernatural practices intended to cause harm, control, or manipulate events or people in ways that are typically considered malevolent or unethical.

Evil Spirits

Supernatural entities believed in many cultures to be the cause of misfortune, illness, or evil.