If the beta of the market index is 1 and the standard deviation of the market index increases from 12% to 18%, what is the new beta of the market index?
A) .8
B) 1
C) 1.2
D) 1.5

Name: If the beta of the market index is 1 and the standard deviation of the market index increases from 12% to 18%, what is the new beta of the market index? A) .8 B) 1 C) 1.2 D) 1.5
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Question

Quizplus · Accepted Answer

Market beta always equals 1 regardless of market volatility.

If the Beta of the Market Index Is 1 and the Standard