Multiple Choice
The beta of an active portfolio is .80. The standard deviation of the returns on the market index is 25%. The nonsystematic variance of the active portfolio is 0.03. The standard deviation of the returns on the active portfolio is
A) 28.32%.
B) 26.46%.
C) 24.62%.
D) 22.17%.
E) 20.08%.
Correct Answer:
Verified
Correct Answer:
Verified
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