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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)
  • A
    7% (1)
  • B
    7% (1)
  • C
    87% (13)

Topics

#beta#risk-free rate#market portfolio#CAPM

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