Knowing beta, determining the portfolio with a sixty-security fully diversified portfolio requires ______ statistic(s) per security.
A) 1
B) 60
C) 3600/2
D) 3600

Name: Knowing beta, determining the portfolio with a sixty-security fully diversified portfolio requires ______ statistic(s) per security. A) 1 B) 60 C) 3600/2 D) 3600
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Question

Quizplus · Accepted Answer

Beta is a single statistic that measures a security's sensitivity to market movements, so only one statistic per security is needed.

Knowing Beta, Determining the Portfolio with a Sixty-Security Fully Diversified