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Assuming the Single-Factor Model Applies,the Factor Beta for the Market

Question 49

Multiple Choice

Assuming the single-factor model applies,the factor beta for the market portfolio is:


A) zero.
B) one.
C) the average of the risk-free beta and the beta for the highest risk security in the portfolio.
D) impossible to calculate without collecting sample data.
E) irrelevant to the model.

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