Stocks a and B Each Have an Expected Return of 12%,a

question 80

Multiple Choice

Stocks A and B each have an expected return of 12%,a beta of 1.2,and a standard deviation of 25%.The returns on the two stocks have a correlation of 0.6.Portfolio P has 50% in Stock A and 50% in Stock B.Which of the following statements is correct?

• A)Portfolio P has a beta that is greater than 1.2.
• B)Portfolio P has a standard deviation that is greater than 25%.
• C)Portfolio P has a standard deviation that is less than 25%.
• D)Portfolio P has a beta that is less than 1.2.

Recognize the importance of contingency planning in project budgets.

Know the role of external factors in contributing to project complexity and risk.

Understand the concept of measures of center and variability in datasets.

Differentiate between various measures of center like mean, median, and mode, and identify their applications.

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Definitions:

Sales And Profitability

measures of the effectiveness of a company's operations; where sales refer to the revenue from goods or services sold, and profitability is the extent to which this revenue exceeds the costs incurred.

Historical Approach

A method of research that examines past events and developments to understand the present and anticipate future trends.

Desired Performance

A target level of performance set by an individual or organization to achieve specific goals.

Actual Performance

The real, observed outcomes of a person's work or the execution of a specific task.