The Market Portfolio Has a Beta of ________

question 48

Multiple Choice

The market portfolio has a beta of ________.

• A) -1
• B) 0
• C) .5
• D) 1

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Definitions:

Proportion

A part, share, or number considered in comparative relation to a whole.

Overhead

The ongoing business expenses not directly attributed to creating a product or service, such as rent, utilities, and administrative costs.

Lowest Terms

The equivalent ratio having the smallest possible integers for its terms.

Division

A mathematical operation where one quantity is divided by another, resulting in a quotient and sometimes a remainder.