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Business, 06.08.2019 02:20 mrichardson2880

Stocks a and b both have an expected return of 10% and a standard deviation of returns of 25%. stock a has a beta of 0.8 and stock b has a beta of 1.2. the correlation coefficient, r, between the two stocks is +0.6. portfolio p has 50% invested in stock a and 50% invested in b. which of the following statements is correct?
a. portfolio p has a coefficient of variation equal to 2.5.
b. portfolio p has more market risk than stock a but less market risk than b.
c. portfolio p has a standard deviation of 25% and a beta of 1.0.
d. all of the statements above are correct
e. none of the statements above is correct

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