The Beta of an Active Portfolio Is

question 10

Multiple Choice

The beta of an active portfolio is .97. The standard deviation of the returns on the market index is 15%. 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) 22.62%.
• C) 19.60%.
• D) 24.17%.
• E) 27.61%.

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Definitions:

Taxable Income Interval

A range of income subject to taxation, often determined by tax brackets.

Single Mother

A woman who has a child or children and is raising them without the support of their other parent.

Head of Household

A tax filing status for unmarried individuals who provide the main source of support for one or more qualifying persons in their home.

Taxable Income

The amount of income that is used to calculate how much tax an individual or a company owes to the government.