The beta of market portfolio is:
A) + 1.0
B) +0.5
C) 0
D) -1.0

Name: The beta of market portfolio is: A) + 1.0 B) +0.5 C) 0 D) -1.0
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Question

Quizplus · Accepted Answer

The beta of the market portfolio by definition is 1.0. This means that the market as a whole has a beta of 1.0, and individual securities with a beta greater than 1 are considered more volatile than the overall market, while those with a beta less than 1 are considered less volatile than the market.

The Beta of Market Portfolio Is