Stock X Has a Beta of 0

question 78

Multiple Choice

Stock X has a beta of 0.7 and Stock Y has a beta of 1.3.The standard deviation of each stock's returns is 20%.The stocks' returns are independent of each other,i.e. ,the correlation coefficient,r,between them is zero.Portfolio P consists of 50% X and 50% Y.Given this information,which of the following statements is CORRECT?

• A) Portfolio P has a standard deviation of 20%.
• B) The required return on Portfolio P is equal to the market risk premium (r_M - r_RF).
• C) Portfolio P has a beta of 0.7.
• D) Portfolio P has a beta of 1.0 and a required return that is equal to the riskless rate,r_RF.
• E) Portfolio P has the same required return as the market (r_M).

Identify antioxidants and their sources, including red wine and dark chocolate.

Understand the basis and significance of Daily Values on food labels.

Recognize the varying nutrient requirements for different populations, such as athletes versus non-athletes.

Differentiate between male and female nutritional needs, specifically regarding vitamins and minerals.

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Definitions:

Energy Expenditure

The amount of energy, measured in calories, that a person uses to breathe, circulate blood, digest food, and be physically active.

Toxic Compound

A chemical substance known to cause harm to organisms through its chemical action when ingested, inhaled, or comes into contact with skin.

Insecticide

Substances used to kill or control the population of insects, typically used in agriculture and household pest control.

Pathogen

An organism, typically a bacterium, virus, or other microorganism, that can cause disease in its host.