number 9

9. Alline is considering the data from the stock market. The information exported are related to four stocks: A, B, C and D. Portfolio ABCD has one quarter of its funds invested in each of the four stocks. The risk-free rate is 4.5%, and the market is in equilibrium, so required returns equal expected returns. which of the following statements is CORRECT? * Beta Stock A B Expected Return Standard deviation 10% 15% 12% 17.50% 12% 19% 15% 22.50% 1 1.5 1.7 1.8 C D O A) Portfolio ABCD's expected return is 12.25%. B) According to Cooficient of Variation the investors in indifferent between stocks A & D, but choosing B is much better than all other stocks OC) Portfolio AB's required return is greater than the required return on Stock A. OD) All of the above O E) None of the above