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Answer the following questions: Security A has an expected rate of return of 6%, a standard deviation of returns of 30%, a correlation coefficient with the market of 0.25, and a beta coefficient of 0.
Answer the following questions: Security A has an expected rate of return of 6%, a standard deviation of returns of 30%, a correlation coefficient with the market of 0.25, and a beta coefficient of 0.5. Security B has an expected return of 11%, a standard deviation of returns of 10%, a correlation with the market of 0.75, and a beta coefficient of 0.5. Which security is riskier? Why?The standard deviation of stock returns for Stock A is 40%. The standard deviation of the market return is 20%. If the correlation between Stock A and the market is 0.70, then what is Stock A’s beta?An analyst has modeled the stock of Crisp Trucking using a two-factor APT model. The risk- free rate is 6%, the expected return on the first factor r1 is 12%, and the expected return on the second factor r2 is 8%. If bi1 0 7 and bi2 0 9, what is Crisp’s required return?Stock A has an expected return of 12% and a standard deviation of 40%. Stock B has an expected return of 18% and a standard deviation of 60%. The correlation coefficient between Stocks A and B is 0.2. What are the expected return and standard deviation of a portfolio invested 30% in Stock A and 70% in Stock B? Your paper should meet the following requirements: Be approximately 2 pages in length, not including the cover page and reference page.Follow the CSU-Global Guide to Writing and APA (Links to an external site.)Links to an external site.. Each paper should include an introduction, a body with at least two fully developed paragraphs, and a conclusion.Support your answers with the readings from Module 4 and at least one scholarly journal article. The CSU-Global Library is a great place to find resources.Be clear and well written, concise, and logical, using excellent grammar and style techniques. You are being graded in part on the quality of your writing. If you need assistance with your writing style, start with Tools for Effective Writing at the CSU-Global Library, accessible from the library’s homepage.