A Managed Portfolio Has a Standard Deviation Equal to 22

question 4

Multiple Choice

A managed portfolio has a standard deviation equal to 22% and a beta of 0.9 when the market portfolio's standard deviation is 26%. The adjusted portfolio P________ needed to calculate the M² measure will have ________ invested in the managed portfolio and the rest in T-bonds.

• A)84.6%
• B)118%
• C)18%
• D)15.4%

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Definitions:

Interest

A feeling of curiosity or concern about something or someone, which can motivate learning and engagement.

Internal Factor

Elements or forces within an organization or individual that can affect performance, mood, or outcomes.

Heredity

The genetic transmission of characteristics from parents to offspring, influencing various traits and predispositions.

Intelligence

The ability to learn, understand, and make judgments or have opinions that are based on reason.