For Each 1% Change in the Market Portfolio's Excess Return

question 79

Multiple Choice

For each 1% change in the market portfolio's excess return, the investment's excess return is expected to change by ________ due to risks that it has in common with the market.

• A) beta
• B) alpha
• C) 0%
• D) 1%

---

Definitions:

Knowledge Competencies

The blend of skills, abilities, and expertise that individuals or organizations possess, which are essential for effective performance.

Skills Development

The enhancement of an individual's job-related skills and capabilities through training and education.

High-Potential Employees

Individuals recognized for their ability, engagement, and aspiration to rise to and succeed in more senior positions within an organization.

Replacement Analysis

An assessment to determine the need and timing for replacing employees owing to retirement, turnover, or skill obsolescence, ensuring uninterrupted operations.