Consider the Following Two Statements: (I) the Market Beta Is

Multiple Choice

Consider the following two statements: (i) The market beta is the standardized variance of the market portfolio.
(ii) The market beta is an appropriate measure of risk under the assumptions of homogenous
Expectations and riskless borrowing and lending.

A) (i) is correct and (ii) is incorrect.
B) (ii) is correct and (i) is incorrect.
C) (i) and (ii) are both correct.
D) (i) and (ii) are both incorrect.
E) There is no such thing as a market beta.