A beta coefficient of 0 represents an asset that ________.
A)has an expected return greater than the market portfolio
B)has the same expected return as the market portfolio
C)has returns that do not fluctuate at all
D)has an expected return equal to the risk-free rate

Question

Quizplus · Accepted Answer

A beta coefficient of 0 indicates that the asset has no sensitivity to market movements and therefore has a return that is equal to the risk-free rate, which is typically a low and stable return.

A Beta Coefficient of 0 Represents an Asset That ________