In equilibrium, all risky assets must have betas equal to 0.

Name: In equilibrium, all risky assets must have betas equal to 0.
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In equilibrium, risky assets do not have betas equal to 0. Instead, their betas measure their sensitivity to the market as a whole, with a beta of 1 indicating average market risk. Assets can have betas greater or less than 1, reflecting more or less risk than the market, respectively.

In Equilibrium, All Risky Assets Must Have Betas Equal to 0