Stock a Has a Beta of 1

question 47

Multiple Choice

Stock A has a beta of 1.2 and a standard deviation of 25%.Stock B has a beta of 1.4 and a standard deviation of 20%.Portfolio AB was created by investing in a combination of Stocks A and B.Portfolio AB has a beta of 1.25 and a standard deviation of 18%.Which of the following statements is CORRECT?

• A) Stock A has more market risk than Portfolio AB.
• B) Stock A has more market risk than Stock B but less stand-alone risk.
• C) Portfolio AB has more money invested in Stock A than in Stock B.
• D) Portfolio AB has the same amount of money invested in each of the two stocks.
• E) Portfolio AB has more money invested in Stock B than in Stock A.

Apply cost-volume-profit analysis to make informed business decisions.

Analyze the profitability of products using per unit data and constraints.

Identify and understand various recruitment policies and practices within organizations.

Recognize the influence of employment laws and ethical considerations on recruitment strategies.

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Definitions:

Taste Cortex

An area of the brain responsible for processing taste information.

Insula

A region of the brain located deep within the cerebral cortex, involved in consciousness and the regulation of emotion.

Temporal Lobe

A region of the brain located beneath the lateral fissure on both cerebral hemispheres, involved in processing auditory information and encoding memory.

Parietal Lobe

A region of the cerebral cortex involved in processing sensory information regarding the location of parts of the body as well as interpreting visual information and processing language and mathematics.