Managed portfolio and the rest in t-bills


A managed portfolio has a standard deviation equal to 26% and a beta of 2.7 when the market portfolio's standard deviation is 31%. The adjusted portfolio P* needed to calculate the M2 measure will have _______ invested in the managed portfolio and the rest in T-bills.

a) 134.29%

b) 144.39%

c) 158.51%

d) 119.23%

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Business Management: Managed portfolio and the rest in t-bills
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