You’ve decided to build a portfolio of two stocks, AirBNB &…

You’ve decided to build a portfolio of two stocks, AirBNB & Target. You estimate that AirBNB has an expected return of 12% with a volatility of 22%, Target has an expected return of 8% with a volatility of 16%, and the two stocks will have a correlation of 0.3. Based on these assumptions, which of the following is not true if you invest 75% in AirBNB and 25% in Target?

You are evaluating two funds and want to choose a single fun…

You are evaluating two funds and want to choose a single fund that will serve as your risky portfolio. Along with finding that the risk-free rate is 6%, you’ve collected the following data: Fund A had an average total return of 15%, standard deviation of 11%, and a beta of 0.55 Fund B had an average total return of 31%, standard deviation of 26%, and a beta of 1.62 Assuming these historic return statistics are your best forecast of future return behavior, which fund should you choose as your single risky portfolio?