Consider the one-factor APT. The standard deviation of returns on a well-diversified portfolio is 27.50%. The standard deviation on thefactor portfolio is 24.50%.What is the beta of the well-diversified portfolio? (Round your answer to 5 decimal places.)Beta

=> beta is defined as the standard deviation of the portfolio divided by the standard deviation…

Answered: Consider the one-factor APT. The…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 13QTD

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Consider the one-factor APT. The standard deviation of returns on a well-diversified portfolio is 27.50%. The standard deviation on the factor portfolio is 24.50%. What is the beta of the well-diversified portfolio? (Round your answer to 5 decimal places.) Beta