The Market Portfolio, by Definition, Has a Beta = 0

question 222

True/False

The market portfolio, by definition, has a beta = 0.

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Definitions:

Professional Investor

An individual or entity that invests in various financial instruments or assets as a primary occupation, often with considerable experience and resources.

Early-stage

Refers to the initial periods or phases in the development or progress of something, often used in the context of startups or new projects.

Long-term Growth

The sustained increase in the economic performance or potential of an entity over an extended period, often involving strategies aimed at competitive advantage, market expansion, and innovation.

Company's Potential

The capacity or capability of a company to achieve future growth, success, or profitability.