The Average Beta of Individual Stocks in the Market Portfolio

question 34

Multiple Choice

The average Beta of individual stocks in the market portfolio is:

• A)one.
• B)zero.
• C)midway between zero and one.
• D)cannot be calculated without knowing the stocks in the portfolio.

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Definitions:

Uniform Electronic Transactions Act

A set of laws enacted to establish the legal validity of electronic signatures and records in commercial transactions.

Mailbox Rule

A legal doctrine stating that an offer is considered accepted at the moment the acceptance is dispatched, not when it is received by the offeror.

Common Law

A legal system based on precedent and court decisions, rather than written laws and statutes.

Reasonable Amount

A quantity or level of something considered to be within sensible limits.