Question: 12 What is the typical relationship between the return standard deviation of an individual common stock and the return standard deviation of a diversified portfolio
12 What is the typical relationship between the return standard deviation of an individual common stock and the return standard deviation of a diversified portfolio of common stocks? A) The individual stock's return standard deviation is higher. B E The individual stock's return standard deviation is lower. There is no way to predict this relationship. The return standard deviations should be equal. None of these are correct Question 13 1.5 Points Last saved 10:36:24 PM Company X has 2 million shares of common stock outstanding at a book value of $2.00 per share. The stock trades for $3.00 per share. It also has $2 million in face value of debt that trades at 90% of par. What is the weight on debt for WACC purposes? (round Questions Filter (25) 1.5 Points
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