Problem: Karen's portfolio which has a beta of 1.02, consists of three mutual funds: an international fund, a utility fund, and a technology fund. The international fund has a beta of 1.5 and makes up to 20% of the portfolio. The utility fund has a beta of 05, and the technology fund has a beta of 1.3, If the portfolio's beta equals 1.02, how much of Karen's portofolio is invested in the technolgy field?
A financial planner is examining the portfolios held by several of her clients. The portfolios are described below. Identify which portfolio is less likely to have the smallest standard deviation-
- A portfolio consisting of about 30 technology stocks
- A portfolio consisting of Microsoft, Apple, Computer, and Google
- A portfolio consisting of about 3 randomly selected stocks
- A portfolio containing only Microsoft stock
- A portfolio consisting of about 30 randomly selected stocks