When the share market has bottomed out and is beginning to recover, the best portfolio to own is the one with a beta of
A) 0.0.
B) +2.0.
C) +1.5.
D) +0.5.

Question

Quizplus · Accepted Answer

When the share market has bottomed out and is beginning to recover, the best portfolio to own is the one with a beta of +2.0. This is because a portfolio with a beta of +2.0 will experience a 2% increase in value for every 1% increase in the value of the market.

When the Share Market Has Bottomed Out and Is Beginning