Portfolio Management Q117
117The table below shows information for securities held by three investors, Daniel, David, and Diana.
| Investor | Expected Standard Deviation | Beta |
| Daniel | 30 | 1.60 |
| David | 25 | 1.80 |
| Diana | 20 | 1.40 |
Given that the expected market return declines, which of the following
investor’s security will have the greatest impact on the expected
return?
- Option : B
- Explanation : The security with the highest beta will be most sensitive to change in the expected market return.
