Multiple Choice
The beta of an active portfolio is 1.36. The standard deviation of the returns on the market index is 14%. The nonsystematic variance of the active portfolio is 0.04. The standard deviation of the returns on the active portfolio is
A) 36.46%.
B) 22.62%.
C) 19.60%.
D) 24.17%.
E) 27.61%.
Correct Answer:
Verified
Correct Answer:
Verified
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Q6: A purely passive strategy is defined as<br>A)
Q7: A manager who uses the mean-variance theory
Q9: There appears to be a role for
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