A Portfolio with a Level of Systematic Risk the Same

question 19

Multiple Choice

A portfolio with a level of systematic risk 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:

Daily Management

The ongoing operations and decision-making processes performed by an organization's management team on a day-to-day basis.

Shareholders

Individuals or entities that own one or more shares of stock in a public or private corporation, giving them ownership interests.

Corporate Criminal Liability

The legal principle that a corporation, as an entity, can be held accountable for committing criminal acts.

Strict Liability Rule

A regulation imposing absolute responsibility on certain persons or entities for damages or losses, regardless of fault or intention.