Question 11 The beta of an active portfolio is 1.45. The standard deviation of the returns on the market index is 22%. The nonsystematic variance of the active portfolio is 3%. The standard deviation of the returns on the active portfolio is a) 36.30%. b) 5.84%. c) 19.60%. d) 24.17%. e) 26.0%.
Question 11 The beta of an active portfolio is 1.45. The standard deviation of the returns on the market index is 22%. The nonsystematic variance of the active portfolio is 3%. The standard deviation of the returns on the active portfolio is a) 36.30%. b) 5.84%. c) 19.60%. d) 24.17%. e) 26.0%.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter2: Fundamental Economic Concepts
Section: Chapter Questions
Problem 6E
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![Question 11
The beta of an active portfolio is 1.45. The standard deviation of the returns on the market index
is 22%. The nonsystematic variance of the active portfolio is 3%. The standard deviation of the
returns on the active portfolio is
a) 36.30%.
b) 5.84%.
c) 19.60%.
d) 24.17%.
e) 26.0%.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8ff15857-c308-43da-b2bf-9747d2484f44%2Fffc5fa52-0bde-4af9-80dd-fec6608814ac%2Fc16xmmv_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 11
The beta of an active portfolio is 1.45. The standard deviation of the returns on the market index
is 22%. The nonsystematic variance of the active portfolio is 3%. The standard deviation of the
returns on the active portfolio is
a) 36.30%.
b) 5.84%.
c) 19.60%.
d) 24.17%.
e) 26.0%.
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