Consider the following information for three stocks, a, b, and c. the stocks' returns are positively but not perfectly positively correlated with one another, i. e., the correlations are all between 0 and 1. expected standard stock return deviation beta a 10% 20% 1.0 b 10% 10% 1.0 c 12% 12% 1.4 portfolio ab has half of its funds invested in stock a and half in stock b. portfolio abc has one third of its funds invested in each of the three stocks. the risk-free rate is 5%, and the market is in equilibrium, so required returns equal expected returns. which of the following statements is correct? a. portfolio ab has a standard deviation of 20%. b. portfolio abc has a standard deviation of 20%. c. portfolio ab's required return is greater than the required return on stock a. d. portfolio abc's expected return is 10.66667%. e. portfolio ab's coefficient of variation is greater than 2.0

$8

step-by-step explanation:

it is pretty much backwards.

you take the 4x2 multiply that, and that is = $8

answer: 40.95

step-by-step explanation:

b

step-by-step explanation:

a difference is the result of subtraction. while each of these expressions has subtraction in it, a difference will be the result when subtraction is the last operation applied in the order of operations for the expression. this means subtraction must be outside of the parenthesis. only b has this.

answer: c, the green line

step-by-step explanation:

there is no black line, eliminate b.

simple interest implies periodic payments, but the red line shows no payments, eliminate d.

simple interest has equal payments. if paid say every day, the graph is about a straight line (actually a stairstep).

the yellow line is not straight, eliminate a.

check: the green line is straight, answer is c.

simple interest with positive interest rate gives a straight line sloping up to the right. green line:

g(t) = $100 + ($200-$100) ÷ (20 years) × (t years)

= $100 + (4%/year) × ($100)(t years)

incidentally, the yellow line curving upward represents continuously compounded interest

y = $100 × 2^(t years / (14 assuming the yellow line hits $200 at 14 years. 2^0 is 1, so y(0) = $100; 2^(14/14) is 2, so y(14) = $200.