How is compound interest different from simple interest? A. Compound interest accrues on the down payment as well as the
principal.
B. Compound interest accrues daily, monthly, or quarterly rather than
annually.
C. Compound interest accrues on the interest, as well as the
principal.
D. Compound interest accrues only on the initial amount borrowed.

Stock a has a beta of 1.2 and a standard deviation of 20%. stock b has a beta of 0.8 and a standard deviation of 25%. portfolio p has $200,000 consisting of $100,000 invested in stock a and $100,000 in stock b. which of the following statements is correct? (assume that the stocks are in equilibrium.) (a) stock b has a higher required rate of return than stock a. (b) portfolio p has a standard deviation of 22.5%. (c) portfolio p has a beta equal to 1.0. (d) more information is needed to determine the portfolio's beta. (e) stock a's returns are less highly correlated with the returns on most other stocks than are b's returns.