The Beta of an Active Portfolio Is 1

question 15

Multiple Choice

The beta of an active portfolio is 1.36. The standard deviation of the returns on the market index is 22%. The nonsystematic variance of the active portfolio is 1.2%. The standard deviation of the returns on the active portfolio is

• A) 3.19%.
• B) 31.86%.
• C) 42.00%.
• D) 27.57%.
• E) 2.86%.

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Definitions:

Transformational Work

Involves fundamental changes in an organization's operations, aiming to improve processes, products, and relationships in order to achieve significant improvements in performance.

Employee Morale Risks

The potential negative impact on employee satisfaction and productivity due to various factors such as poor management, lack of recognition, or inadequate working conditions.

Security Risks

Potential threats that could lead to loss, damage, or unauthorized access to information systems and data.

Reduced Value Risks

Risks that lead to the diminishing of an asset's worth or the potential decrease in earnings.