You Have a Portfolio P That Consists of 50% Stock

question 95

Multiple Choice

You have a portfolio P that consists of 50% Stock X and 50% Stock Y.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.Given this information, which of the following statements is CORRECT?

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

Grasp the significance of genetic vs. environmental factors in the etiology of diseases.

Recognize the importance of migration age on disease prevalence among migrant populations.

Interpret the findings of twin studies to infer genetic contributions to diseases.

Identify autosomal dominant diseases and understand their transmission patterns.

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Definitions:

Closed Status

Refers to a condition or state of a system, process, or item that is not open for changes, operations, or transactions.

Current Draw

The amount of electrical current a device consumes while it is operating.

Headlamp Resistance

The electrical resistance offered by a headlamp's filament, which determines the amount of current flowing through it and thus its brightness.

Amps

A unit of electrical current, shorthand for amperes, representing the flow of electric charge through a conductor.