Suppose the standard deviation of the market return is 20 a What is the standard deviation of returns on a well diversified portfolio with a beta of 1 3 b What is the standard deviation of returns on a well diversified portfolio with a beta of 0 c A well diversified portfolio has a standard deviati...

Suppose the standard deviation of the market return is 20%. a. What is the standard deviation of

Question:

Suppose the standard deviation of the market return is 20%.
a. What is the standard deviation of returns on a well-diversified with a beta of 1.3?
b. What is the standard deviation of returns on a well-diversified with a beta of 0?
c. A well-diversified has a standard deviation of 15%. What is its beta?
d. A poorly diversified has a standard deviation of 20%. What can you say about its beta?

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...