The Beta of an Active Portfolio Is 1

question 51

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 0.03. 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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Definitions:

Cervical Vertebrae

The vertebrae of the neck, which form the upper part of the vertebral column and support the skull while allowing for a range of head movements.

Metabolic Rates

The rate at which the body uses energy to maintain basic life functions, such as breathing, blood circulation, and cell production.

Arboreal

Describing organisms that live in trees or are adapted to a life in the trees.

Orthologs

Genes across various species originating from a single ancestral gene through the process of speciation, which continue to perform the same function.