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%.

---

Definitions:

Infant IQ Tests

Assessments designed to measure the cognitive abilities of babies and young children, predicting future intelligence.

Bayley Scales

A series of standardized tests used primarily to assess the developmental progress of infants and toddlers, encompassing areas such as motor, cognitive, and language development.

School Success

Achieving desired academic outcomes, which can include good grades, mastery of skills, or other educational achievements.

Language Development

How children acquire the ability to understand and use language during the initial stages of life.