The Market Value Weighted-Average Beta of Firms Included in the Market

question 8

Multiple Choice

The market value weighted-average beta of firms included in the market index will always be ________.

• A) 0
• B) between 0 and 1
• C) 1
• D) none of these options (There is no particular rule concerning the average beta of firms included in the market index.)

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Definitions:

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Questionnaire

A research instrument consisting of a series of questions for the purpose of gathering information from respondents.

Reliable

The extent to which a measure, test, or instrument yields consistent and stable results across different occasions.

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Pertaining to something that is sound, well-founded, or legally binding.