What is the standard deviation of returns


Problem:

Please provide step by step instructions to complete the questions asked. This is the only information given in the book.

Suppose the standard deviation of the market return is 20%

1) What is the standard deviation of returns on a well-diversified portfolio with a beta of 1.3?

2) What is the standard deviation of returns on a well-diversified portfolio with a beta of 0?

3) A well-diversified portfolio has a standard deviation of 15%. What is its beta?

4) A poorly diversified portfolio has a standard deviation of 20%. What can you say about its beta?

Solution Preview :

Prepared by a verified Expert
Other Management: What is the standard deviation of returns
Reference No:- TGS01982588

Now Priced at $25 (50% Discount)

Recommended (96%)

Rated (4.8/5)