If the Standard Deviation of Returns of the Market Is

question 76

Multiple Choice

If the standard deviation of returns of the market is 20% and the beta of a well-diversified portfolio is 1.5, calculate the standard deviation of the portfolio:

• A) 30%
• B) 20%
• C) 10%
• D) none of the above

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Definitions:

Two-Independent Sample T-Test

A statistical test used to compare the means of two independent groups to determine if there is a statistically significant difference between them.

Wilcoxon Signed Rank Test

The Wilcoxon signed rank test is a nonparametric statistical test used to compare the median of two related samples to determine if there are significant differences between them.

P-Value

The probability of observing a test statistic as extreme as, or more extreme than, the observed value under the assumption that the null hypothesis is true.

Kruskal-Wallis Test

A nonparametric statistical test that assesses whether there are statistically significant differences between two or more groups of an independent variable on a continuous or ordinal dependent variable.