The Beta of an Active Portfolio Is 1

question 42

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 3%.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:

Part-Time Job

Employment with fewer hours per week compared to full-time positions, allowing for flexibility, often pursued by students or individuals with other commitments.

Family Members

Individuals related by blood, marriage, or adoption who typically share close personal bonds and responsibilities.

Assignment Deadline

The specific date and time by which an assignment must be submitted for it to be considered on time.

Unforeseen Family Issues

Unexpected personal circumstances involving family members that can impact one's ability to focus or continue with planned activities.