What is the standard deviation of the market portfolio if the standard deviation of a well-diversified portfolio with a beta of 1.25 equals 20%?
A) 16.00%
B) 18.75%
C) 25.00%
D) 32.50%

Name: What is the standard deviation of the market portfolio if the standard deviation of a well-diversified portfolio with a beta of 1.25 equals 20%? A) 16.00% B) 18.75% C) 25.00% D) 32.50%
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Question

Quizplus · Accepted Answer

Portfolio σ = beta × market portfolio σ20% = 1.25 × σ_mσ_m = 16%

What Is the Standard Deviation of the Market Portfolio If