Omega inc. makes lightweight sunglasses with 100-percent uv protection for people who love to hunt, hike, and ride bikes. the company's long-term plans include the development of lenses that, in addition to protecting users from uv rays, would reduce lens spotting through effective water-sheeting methods. this new feature would be valuable to people who fish. given the rising popularity of recreational fishing in the united states, omega products clearly have a huge market potential. in terms of a swot analysis, omega has recognized a market

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.