The Two Stocks in Your Portfolio, X and Y, Have

question 2

Multiple Choice

The two stocks in your portfolio, X and Y, have independent returns, so the correlation between them, rXY is zero. 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%. Which of the following statements best describes the characteristics of your 2-stock portfolioσ

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

Explain the historical development of international trade agreements and policies.

Understand the different types of love and their characteristics.

Comprehend the concepts and components of Sternberg's triangular theory of love.

Recognize how passionate and companionate love contribute to the dynamic nature of relationships.

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Definitions:

Hurricane Katrina

One of the deadliest hurricanes to hit the United States, causing widespread destruction along the Gulf coast, particularly in New Orleans, in August 2005.

Price Floor

A government-imposed limit on how low a price can be charged for a product, aimed to ensure fair conditions for producers.

Temporary Surplus

A situation where the supply of a product exceeds demand for a short period, often leading to price reductions.

Permanent Surplus

A situation in which the supply of a particular good or service persistently exceeds demand, often leading to long-term price declines.