Multiple Choice
The beta of an active portfolio is 1.36. The standard deviation of the returns on the market index is 22%. The nonsystematic variance of the active portfolio is 1.2%. The standard deviation of the returns on the active portfolio is
A) 3.19%.
B) 31.86%.
C) 42.00%.
D) 27.57%.
E) 2.86%.
Correct Answer:
Verified
Correct Answer:
Verified
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