The beta of an active portfolio is 1.45. The standard deviation of the returns on the market inde is 22%. The nonsystematic variance of the active portfolio is 3%. The standard deviation of the returns on the active portfolio is a) 36.30%. b) 5.84%. c) 19.60%. d) 24.17%. e) 26.0%.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter2: Fundamental Economic Concepts
Section: Chapter Questions
Problem 6E
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The beta of an active portfolio is 1.45. The standard deviation of the returns on the market inde
is 22%. The nonsystematic variance of the active portfolio is 3%. The standard deviation of the
returns on the active portfolio is
a) 36.30%.
b) 5.84%.
c) 19.60%.
d) 24.17%.
e) 26.0%.
Transcribed Image Text:The beta of an active portfolio is 1.45. The standard deviation of the returns on the market inde is 22%. The nonsystematic variance of the active portfolio is 3%. The standard deviation of the returns on the active portfolio is a) 36.30%. b) 5.84%. c) 19.60%. d) 24.17%. e) 26.0%.
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