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The market portfolio has an expected return of 10% and a standard deviation of 10%. The risk-free rate is 2%. What is the standard deviation of a well-diversified portfolio with an expected return of 30% ? What is the standard deviation of an individual asset with an expected return of 30%? O a. 22.5%; 22.5% O b. 35%; 35% O c. 35%; it should be less than 35% O d. 35%; it should be more than 35%

The market portfolio has an expected return of 10% and a standard deviation of 10%. The risk-free rate is 2%. What is the standard deviation of a well-diversified portfolio with an expected return of 30% ? What is the standard deviation of an individual asset with an expected return of 30%? O a. 22.5%; 22.5% O b. 35%; 35% O c. 35%; it should be less than 35% O d. 35%; it should be more than 35%

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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The market portfolio has an expected return of 10% and a standard deviation of 10%. The risk-free rate is 2%. What is the standard deviation of a well-diversified portfolio with an expected return of 30% ? What is the standard deviation of an individual asset with an expected return of 30%? O a. 22.5%; 22.5% O b. 35%; 35% O c. 35%; it should be less than 35% O d. 35% ; it should be more than 35%
Transcribed Image Text:The market portfolio has an expected return of 10% and a standard deviation of 10%. The risk-free rate is 2%. What is the standard deviation of a well-diversified portfolio with an expected return of 30% ? What is the standard deviation of an individual asset with an expected return of 30%? O a. 22.5%; 22.5% O b. 35%; 35% O c. 35%; it should be less than 35% O d. 35% ; it should be more than 35%
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