Multiple Choice
Suppose you held a well-diversified portfolio with a very large number of securities, and that the single index model holds. If the σ of your portfolio was 0.24 and σM was 0.18, the β of the portfolio would be approximately
A) 0.64.
B) 1.33.
C) 1.25.
D) 1.56.
Correct Answer:
Verified
Correct Answer:
Verified
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