The Beta of an Active Portfolio Is 1

question 16

Multiple Choice

The beta of an active portfolio is 1.60. The standard deviation of the returns on the market index is 18%. The nonsystematic variance of the active portfolio is 0.05. The standard deviation of the returns on the active portfolio is

• A) 36.46%.
• B) 22.62%.
• C) 19.60%.
• D) 24.17%.
• E) 27.61%.

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Definitions:

Brand Management

The process of developing and maintaining a brand's image, reputation, and identity in the market.

Branding Strategies

Plans and actions that companies use to differentiate their brand, products, or services in the market to attract and retain customers.

Transmitting Model

A communication theory model where information is sent from a sender to a receiver through a medium, emphasizing the one-way dissemination of information.

Communication

The dynamic, ongoing process of creating and negotiating meanings through interactional symbolic (verbal and nonverbal) practices, including conversation, metaphors, rituals, stories, dress, and space.