Asked by
Avery Powers
on Nov 03, 2024
Verified
The market portfolio has a beta of
A) 0.
B) 1.
C) −1.
D) 0.5.
Market Portfolio
The portfolio encompassing all assets in which each asset is held in proportion to its market value.
Beta
The measure of the systematic risk of a security. The tendency of a security’s returns to respond to swings in the broad market.
- Illustrate the critical role beta plays in evaluating a security's exposure to market risk.
Verified Answer
DM
Learning Objectives
- Illustrate the critical role beta plays in evaluating a security's exposure to market risk.