The market portfolio would have a beta of
A) 0.
B) 1.0.
C) 100.
D) any value.

Name: The market portfolio would have a beta of A) 0. B) 1.0. C) 100. D) any value.
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Question

Quizplus · Accepted Answer

The market portfolio is represented by the overall stock market, and by definition, has a beta of 1.0. Beta measures the volatility of an asset in relation to the market, and the market itself serves as the baseline with a beta of 1.0. Therefore, the answer is B.

The Market Portfolio Would Have a Beta of