The Beta of an investment in Treasury bills is:
A)0.0
B)0.5
C)1.0
D)Meaningless; only common stocks have Betas

Question

Quizplus · Accepted Answer

The Beta of an investment in Treasury bills is 0.0 because Treasury bills are considered risk-free securities and have no market risk. Beta is a measure of an asset's volatility in relation to the market as a whole, so it is meaningless for risk-free securities like Treasury bills.

The Beta of an Investment in Treasury Bills Is