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A Managed Portfolio Has a Standard Deviation Equal to 22

Question 4

Multiple Choice

A managed portfolio has a standard deviation equal to 22% and a beta of 0.9 when the market portfolio's standard deviation is 26%. The adjusted portfolio P________ needed to calculate the M2 measure will have ________ invested in the managed portfolio and the rest in T-bonds.


A) 84.6%
B) 118%
C) 18%
D) 15.4%

Correct Answer:

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