The Market Portfolio Has a Beta of

question 34

Multiple Choice

The market portfolio has a beta of

• A) 0.
• B) 1.
• C) −1.
• D) 0.5.

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Definitions:

Primary Source

An original document or firsthand account that has not been previously interpreted or analyzed.

Legally Binding

A term describing agreements or contracts that are enforceable by law, meaning parties must abide by the terms or face legal consequences.

Source of Law

The origin from which a particular legal rule or principle derives, such as a constitution, statute, court decision, or executive order.

Downward Sloping Demand

A characteristic of most demand curves, indicating that as the price of a good decreases, the quantity demanded increases.