The standard deviation of returns of the market is 19 and the beta of a well- diversified portfolio is 2.4, calculate the standard deviation of the portfolio, precise to 2 digits after the comma, in percentage notation (without the percentage symbol!):

    Beta of Asset A = Covariance of Asset A and Market / (Standard Deviation of Market)^(2)

    and Covariance of Asset A and Market = Correlation Coefficient x Standard Deviation of A x Standard Deviation of Market

    Beta of Asset A = Correlation Coefficient x [Standard Deviation of Asset A / Standard Deviation of Market]

    2.4 x 0.19 = Standard Deviation of Asset A

    Standard Deviation of Asset A = 0.456 or 45.6 %