Which One of the Following Statements Concerning Beta Is Correct

question 41

Multiple Choice

Which one of the following statements concerning beta is correct?

• A) The beta of a portfolio must be greater than or equal to zero but less than or equal to one.
• B) The beta of a portfolio can be greater than the highest beta of an individual security within the portfolio.
• C) If the weights of the individual securities within a portfolio are changed, the beta of the portfolio will remain constant.
• D) The beta of a portfolio measures the systematic risk of the portfolio and has a value that cannot exceed the value of the highest beta of any individual security in the portfolio.
• E) The beta of a portfolio measures the unsystematic risk of the portfolio and has a value that must be greater than or equal to zero.

---

Definitions:

Relationship Rule

Guidelines or norms that govern the behavior of individuals within a relationship, helping to manage expectations and interactions.

Other-Oriented Approach

An interpersonal communication strategy emphasizing attentiveness to the needs, interests, and feelings of others in conversations or actions.

Integrity

The quality of being honest and having strong moral principles; moral uprightness.

Asynchronous

Referring to actions or processes that do not occur at the same time or rate, especially in communication or computing.