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    Standard deviation of returns

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    Suppose that a mutual fund has a beta equal to 0.75. Is it necessarily the case that the standard deviation of returns on the fund is less than the standard deviation of market returns? Why or why not?

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    https://brainmass.com/business/finance/standard-deviation-of-returns-183966

    Solution Preview

    Standard deviation represents the total risk; beta represents the systematic risk.Total risk = Systematic risk + Unsystematic risk (or Unique / Stand alone ...

    Solution Summary

    The solution answers the question that is it necessarily the case that the standard deviation of returns on the fund is less than the standard deviation of market returns.

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