Stock A’s expected return is 15% and its standard deviation is 5%. Which of the following statements

Stock A’s expected return is 15% and its standard deviation is 5%. Which of the following statements is correct? a. There is a 68% chance that Stock A’s realized returns will be between 10% and 20%. b. There is a 95% chance that Stock A’s realized returns will be between 10% and 20%. c. If an investor holds only Stock A and does not own any other assets, then this investor is rational. d. Forming a two-stock portfolio by adding a negatively correlated second stock will make beta the relevant measure of this portfolio’s risk exposure. e. None of the above statements are correct.

 

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