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Business, 09.10.2019 00:00 nikitakhrabkov123

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.

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