The Beta of an Active Portfolio Is 1

question 26

Multiple Choice

The beta of an active portfolio is 1.45.The standard deviation of the returns on the market index 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%.

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Definitions:

Empathy

The capacity to understand or feel what another person is experiencing from within their frame of reference, i.e., the capacity to place oneself in another's position.

Genuineness

The quality of being authentic, honest, and sincere in one's feelings and intentions.

Unconditional Positive Regard

Accepting and respecting others without judgment or condition.

Neuroses

Psychological disorders characterized by anxiety or avoidance behavior, not involving psychosis.