If the standard deviation of returns on the market is 10 percent, and the beta of a well- diversified portfolio is 1, calculate the standard deviation of this portfolio. O 10% O 20% 30% O Cannot be determined!

Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter13: Probability And Calculus
Section13.3: Special Probability Density Functions
Problem 28E
Question
If the standard deviation of returns on the market is 10 percent, and the beta of a well-
diversified portfolio is 1, calculate the standard deviation of this portfolio.
O 10%
O 20%
30%
O Cannot be determined!
Transcribed Image Text:If the standard deviation of returns on the market is 10 percent, and the beta of a well- diversified portfolio is 1, calculate the standard deviation of this portfolio. O 10% O 20% 30% O Cannot be determined!
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