Your Portfolio Consists of $50,000 Invested in Stock X and $50,000

question 16

Multiple Choice

Your portfolio consists of $50,000 invested in Stock X and $50,000 invested in Stock Y.Both stocks have an expected return of 15%,betas of 1.6,and standard deviations of 30%.The returns of the two stocks are independent,so the correlation coefficient between them,rXY,is zero.Which of the following statements best describes the characteristics of your 2-stock portfolio?

• A) Your portfolio has a standard deviation of 30%,and its expected return is 15%.
• B) Your portfolio has a standard deviation less than 30%,and its beta is greater than 1.6.
• C) Your portfolio has a beta equal to 1.6,and its expected return is 15%.
• D) Your portfolio has a beta greater than 1.6,and its expected return is greater than 15%.
• E) Your portfolio has a standard deviation greater than 30% and a beta equal to 1.6.

Understand the rights and liabilities of parties in agency relationships, including indemnification and liability for contracts.

Evaluate the legal implications when agents act beyond their authority in representation or negotiation contexts.

Appreciate the importance of clear communication and the establishment of agency relationships, including their creation and termination.

Understand the role and impact of social media in facilitating communication.

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Definitions:

Repudiation

The rejection or denial of a duty, obligation, or contract.

Anticipatory Breach

An expressed or implied declaration by one party to a contract that they do not intend to fulfill their future obligations under the contract.

Express Breach

A clear and definitive violation of a contract's terms, explicitly stated within the agreement.

Dock Strike

A work stoppage or labor strike involving dock workers, often due to disputes over pay, working conditions, or labor practices.