A security with a beta of one has a required rate of return equal to the overall market rate of return.

Name: A security with a beta of one has a required rate of return equal to the overall market rate of return.
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A security with a beta of one is said to have the same level of risk as the overall market. Therefore, its required rate of return would be equal to the rate of return expected from the overall market. This is why investment in such a security is considered to give an average rate of return.

A Security with a Beta of One Has a Required