The Beta for the Market Portfolio Is Closest To

question 55

Multiple Choice

The beta for the market portfolio is closest to:

• A)1.
• B)0.
• C)Unable to answer this question without knowing the market's expected return.
• D)Unable to answer this question without knowing the market's volatility.

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Definitions:

Permanent Residents

Individuals who are granted the right to live indefinitely within a country other than their nationality without being citizens.

Household Expenditure

The total spending by households in an economy, including consumption, rent, utilities, and other expenses.

Durable Goods

Goods not immediately consumed that can be used multiple times over a period, such as appliances, cars, and furniture.

Investment

The allocation of resources, usually money, into something expected to generate income or profit in the future.