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Business, 31.10.2019 00:31 cricri2347

Stocks a and b each have an expected return of 15%, a standard deviation of 20%, and a beta of 1.2. the returns on the two stocks have a correlation coefficient of +0.6. your portfolio consists of 50% a and 50% b. which of the following statements is correct? a. the portfolio's expected return is 15%.b. the portfolio's standard deviation is greater than 20%.c. the portfolio's beta is greater than 1.2.d. the portfolio's standard deviation is 20%.e. the portfolio's beta is less than 1.2.

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