Starbucks is a national chain of gourmet cafes, which caters to coffee-drinkers. Many of their customers commute from the suburbs, and several of the stores are located in business districts so they may better accommodate the commuters' needs. Starbucks sells their private brand of coffees, and also accompanied them with fresh baked goods. They have a synergy between their stores and their website, both of which help to maintain an advantage over competing local coffee shops. This is a description of Starbucks:

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.