Suppose you held a well-diversified portfolio with a very large number of securities, and that the...

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Suppose you held a well-diversified portfolio with a very large number of securities, and that the single index model holds. If the ? of your portfolio was 0.18 and ?M was 0.22, the ? of the portfolio would be approximately 1.19 0.82 1.56 0.64

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Answer 1

Answer #1

Ans. Option 2nd 0.82

B² = s²p / s²m

=(0.18)² / (0.22)²

B² = 0.67;

B = $\sqrt{}$ 0.67 = 0.82

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Answer 2

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