If the standard deviation of returns on the market is 20 percent, and the beta of a well-diversified portfolio is 1.5. Calculate
the standard deviation of this portfolio.
a. 30 percent.
b. 20 percent.
c. 15 percent.
d. 10 percent.
1 answer:
Answer:
a. 30 percent.
Step-by-step explanation:
Given that:
The standard deviation of returns = 20 percent
Beta = 1.5
Beta=Standard deviation of portfolio × correlation/Standard deviation of market × Correlation
Since Correlation with the market will be +1;
Then;
The Standard deviation of portfolio = 1.5 × 20%
The Standard deviation of portfolio = 30.00%
You might be interested in
Answer:
you would put a point on 10 then an arrow up to 20
Step-by-step explanation:
Answer:
c : they will have both saved 97
Step-by-step explanation:
7*6 = 42 + 55(base) = 97
12*6 = 71 = 25(base) =97
I think the answer would be 15, 8•15=120, leaving 3 points left which would be an multiple choice question, hope this helps:))
B. 361/4
you get: x^2-19x+361/4=(x-19/2)^2
Answer: answer is B. 6x+9
Step-by-step explanation:
credits: chrisxxz answered it
