What Is the Beta of the Market Portfolio

question 49

Multiple Choice

What is the beta of the market portfolio?

• A)1
• B)- 1
• C)0
• D)It is impossible to determine.

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Definitions:

Sunk Costs

Costs that have already been incurred and cannot be recovered, which should not affect future business decisions.

Capital Project

A long-term investment undertaken to build, add or improve on a capital asset such as buildings or infrastructure, with the expectation of enhancing value.

Sunk Costs

Costs that have already been incurred and cannot be recovered or refunded.

Incremental Cash Flows

The extra cash flow an organization gains by initiating a new project.