Multiple Choice
By definition,which of the following is correct regarding the beta of the market?
A) The market beta will depend on the composition of the market portfolio and could be greater than or less than 1.
B) The market beta will be less than 1 as the market portfolio is generally more diversified than an individual's portfolio.
C) The market beta will be equal to 1 given that it is the portfolio containing all assets.
D) The market beta will be great than 1 as the market portfolio is generally more diversified than an individual's portfolio.B
Correct Answer:
Verified
Correct Answer:
Verified
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