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 beta greater than 1.6, and its expected return is greater than 15%.b. your portfolio has a beta equal to 1.6, and its expected return is 15%.c. your portfolio has a standard deviation of 30%, and its expected return is 15%.d. your portfolio has a standard deviation less than 30%, and its beta is greater than 1.6.e. your portfolio has a standard deviation greater than 30%, and a beta equal to 1.6.

The following selected circumstances relate to pending lawsuits for erismus, inc. erismus’s fiscal year ends on december 31. financial statements are issued in march 2019. erismus prepares its financial statements according to u.s. gaap. required: indicate the amount erismus would record as an asset, liability, or not accrued in the following circumstances. 1. erismus is defending against a lawsuit. erismus's management believes the company has a slightly worse than 50/50 chance of eventually prevailing in court, and that if it loses, the judgment will be $1,000,000. 2. erismus is defending against a lawsuit. erismus's management believes it is probable that the company will lose in court. if it loses, management believes that damages could fall anywhere in the range of $2,000,000 to $4,000,000, with any damage in that range equally likely. 3. erismus is defending against a lawsuit. erismus's management believes it is probable that the company will lose in court. if it loses, management believes that damages will eventually be $5,000,000, with a present value of $3,500,000. 4. erismus is a plaintiff in a lawsuit. erismus's management believes it is probable that the company eventually will prevail in court, and that if it prevails, the judgment will be $1,000,000. 5. erismus is a plaintiff in a lawsuit. erismus’s management believes it is virtually certain that the company eventually will prevail in court, and that if it prevails, the judgment will be $500,000.