Q. The beta of an active portfolio is 1.20. The standard deviation of the returns on the market index is 20%. The nonsystematic variance of the active portfolio is 1%. The standard deviation of the returns on the active portfolio is __________. (Solved)
1. 3.84%
2. 5.84%
3. 19.60%
4. 26.0%
- d. 26.0%