A fully diversified domestic portfolio has a beta of ________.
A)0.0
B)1.0
C)-1.0
D)Not enough information to answer this question.

Question

Quizplus · Accepted Answer

A fully diversified domestic portfolio has a beta of 1.0, which means it has the same volatility as the overall market. A beta of 0.0 would mean that the portfolio is risk-free or has no correlation with the market, while a negative beta would mean that the portfolio moves in the opposite direction of the market.

A Fully Diversified Domestic Portfolio Has a Beta of ________