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:

Sensation Seeking

A personality trait characterized by a preference for experiences that are varied, novel, complex, and intense, and the willingness to take physical, social, legal, and financial risks for the sake of such experiences.

Novel Sensations

Experiences that are new, unusual, or different, often sought for the pleasure or excitement they bring.

Americans

People originating from or holding citizenship in the United States of America.

Disinhibition

the process where an individual shows reduced restraint or increased impulsivity in situations where such behavior is typically restrained.