A Portfolio with a Level of Systematic Risk That Is

question 35

Multiple Choice

A portfolio with a level of systematic risk that is the same as that of the market has a beta that is

• A) equal to zero.
• B) equal to one.
• C) less than the beta of the risk-free asset.
• D) less than zero.

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Definitions:

Leap Years

Years that are divisible by 4 (with the exception of years divisible by 100 but not by 400), and include an additional day in February.

Interest Computation

The process of calculating the interest payable on a loan or earned on an investment, based on the principal, rate, and time.

Maturity Date

The date on which a financial obligation must be repaid or settled in full.

Leap Years

Years that are divisible by 4 (except for years divisible by 100, unless they are also divisible by 400), having 366 days to keep the calendar year synchronized with the astronomical year.