The Beta of an Active Portfolio Is 1

question 29

Multiple Choice

The beta of an active portfolio is 1.20. The standard deviation of the returns on the market index is 20%. The nonsystematic variance of the active portfolio is 1%. The standard deviation of the returns on the active portfolio is

• A) 3.84%.
• B) 5.84%.
• C) 19.60%.
• D) 24.17%.
• E) 26.0%.

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Definitions:

Average Lateness

A measure of the extent to which tasks or deliverables are completed beyond their scheduled completion times, on average.

Average Completion Time

The mean time taken to complete a set of tasks or activities.

Job Processing

A method of manufacturing where goods are produced in discrete jobs, not necessarily in large batches, allowing for customization and flexibility in production.

Flow Time

The total amount of time a product spends moving through a production process, from start to finish.