Multiple Choice
The beta of an active portfolio is 1.17. The standard deviation of the returns on the market index is 23%. The nonsystematic variance of the active portfolio is 0.06. The standard deviation of the returns on the active portfolio is
A) 32.46%.
B) 30.62%.
C) 29.60%.
D) 27.17%.
E) 36.39%.
Correct Answer:
Verified
Correct Answer:
Verified
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