Slocks that have negative correlation tend to: have higher than average returns

Question

Slocks that have negative correlation tend to: have higher than average returns at the came time. have lower titan average returns at the same time reduce rick a great deal when held together in a portfolio, d have all of these properties. Which of the following is true with respect to portfolio diversification? A portfolio of 10 stocks is likely to have a smaller standard deviation than a portfolio of 20 stocks. A portfolio's expected return increases as more stocks arc added. A portfolio's standard deviation decreases as more stocks arc added What matters is a portfolio's expected return, not its standard deviation Stock A and Stock B have the follow ing expected returns and standard deviations: The correlation coefficient between the two returns is 0.50. What is the standard deviation of a portfolio with half your investment in Stock A. and half in Stock B? Find the expected return for the portfolio: Find the beta for the portfolio:

Explanation / Answer

11) c

12) c

13) c

14) c & f

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