American_Bankers_Association
CTFA · Question #84
The risk-free security has a beta equal to , while the market portfolio's beta is equal to .
The correct answer is C. Zero; one. See the full explanation below for the reasoning.
Investment Management
Question
The risk-free security has a beta equal to , while the market portfolio's beta is equal to .
Options
- AOne more than one
- BOne less than one
- CZero; one
- Dless than zero; more than zero
How the community answered
(15 responses)- A7% (1)
- B7% (1)
- C87% (13)
Topics
#beta#risk-free rate#market portfolio#CAPM
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