Stock a has an expected return of 10% and a standard deviation of 20%. stock b has an expected return of 13% and a standard deviation of 30%. the risk-free rate is 5% and the market risk premium, rm- rrf, is 6%. assume that the market is in equilibrium. portfolio ab has 50% invested in stock a and 50% invested in stock b. the returns of stock a and stock b are independent of one another, i. e., the correlation coefficient between them is zero. which of the following statements is correct? a. portfolio ab's required return is 11%. b. portfolio ab's standard deviation is 25%. c. stock a's beta is 0.8333. d. stock b's beta is 1.. e. since the two stocks have zero correlation, portfolio ab is riskless.

Which term refers to the cost that motivates an economic decision

Find the interest rate for a $4000 deposit accumulating to $5234.58, compounded quarterly for 9 years

An important application of regression analysis in accounting is in the estimation of cost. by collecting data on volume and cost and using the least squares method to develop an estimated regression equation relating volume and cost, an accountant can estimate the cost associated with a particular manufacturing volume. consider the following sample of production volumes and total cost data for a manufacturing operation. production volume (units) total cost ($) 400 4000 450 5000 550 5400 600 5900 700 6400 750 7000 compute b 1 and b 0 (to 2 decimals if necessary). b 1 b 0 complete the estimated regression equation (to 2 decimals if necessary). = + x what is the variable cost per unit produced (to 1 decimal)? $ compute the coefficient of determination (to 4 decimals). note: report r 2 between 0 and 1. r 2 = what percentage of the variation in total cost can be explained by the production volume (to 2 decimals)? % the company's production schedule shows 500 units must be produced next month. what is the estimated total cost for this operation (to 2 decimals)? $