A risk-free asset will have a market-beta
A)equal to1.0.
B)that is negative .
C)that is nonsensical.
D)equal to 0.0.

Name: A risk-free asset will have a market-beta A)equal to1.0. B)that is negative . C)that is nonsensical. D)equal to 0.0.
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Question

Quizplus · Accepted Answer

A risk-free asset has zero market risk (systematic risk) and therefore a market beta of 0.0. A risk-free asset is assumed to have no market risk or systematic risk, which is represented by a beta of 0.0.

A Risk-Free Asset Will Have a Market-Beta