The beta of the market portfolio is
A)+1.0.
B)+0.5.
C)0.0.
D)-1.0.

Name: The beta of the market portfolio is A)+1.0. B)+0.5. C)0.0. D)-1.0.
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Question

Quizplus · Accepted Answer

The beta of the market portfolio is, by definition, 1.0. This means that the market portfolio has the same level of systematic risk as the overall market. A beta of less than 1.0 indicates that a security is less volatile than the market, while a beta of greater than 1.0 indicates that a security is more volatile than the market.

The Beta of the Market Portfolio Is