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Bad White [126]
3 years ago
11

A managed portfolio has a standard deviation equal to 22% and a beta of .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-bills. Select one: A. 118% B. 15.4% C. 18% D. 84.6%
Business
1 answer:
Bingel [31]3 years ago
7 0

Answer:

A. 118%

Explanation:

22w= 26,

Hence:

The weight in the managed portfolio is

26/22

= 118%

Therefore the adjusted portfolio P* needed to calculate the M2 measure will have 118% invested in the managed portfolio and the rest in T-bills.

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