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%.

---

Definitions:

Neurological States

Conditions or statuses of the nervous system reflecting various mental and physical health conditions, affecting behavior, perception, and motor functions.

Violent History

A record or background that includes acts of violence, which could be personal, regional, or global in scope.

Debriefings

Meetings or sessions conducted post-event for review, discussion, and reflection to draw lessons, provide closure, or prepare for future actions.

Death Notification

The formal process of informing individuals about a death, typically carried out by authorities or professionals.