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Stock B Quiz

Investments A and B both offer an expected rate of return of 12%. If the standard deviation of A is 20% and that of B is 30%, then investors would:

When stocks with the same expected return are combined into a portfolio, the expected return of the portfolio is:

If the covariance of Stock A with Stock B is -100, what is the covariance of Stock B with Stock A?

Maximum diversification is obtained by combining two stocks with a correlation coefficient equal to:

Efficient portfolios are those, which offer:

Beta of Treasury bills portfolio is:

The market risk premium is:

The capital asset pricing model (CAPM) states that:

The security market line (SML) is the graph of:

If the beta of Freon is 0.73, risk-free rate is 5.5% and the market rate of return is 13.5%, calculate the expected rate of return from Freon: