Multiple Choice
Which one of the following statements is correct concerning a portfolio beta?
A) Portfolio betas range between −1.0 and +1.0.
B) A portfolio beta is a weighted average of the betas of the individual securities contained in the portfolio.
C) A portfolio beta cannot be computed from the betas of the individual securities comprising the portfolio because some risk is eliminated via diversification.
D) A portfolio of U.S. Treasury bills will have a beta of +1.0.
E) The beta of a market portfolio is equal to zero.
Correct Answer:
Verified
Correct Answer:
Verified
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