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Author Question: By definition, which of the following is correct regarding the beta of the market? (Read 45 times)

bubba123

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By definition, which of the following is correct regarding the beta of the market?

The market beta will depend on the composition of the market portfolio and could beany value.


The market beta will be equal to 1 given that it is a well-diversified portfolio containing all assets.


The market beta will be equal to 1 as the market portfolio diversification is generally the same as an individual’sportfolio diversification.


The market beta will be less than 1 as the market portfolio is generally less diversified than an individual’s portfolio.



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Marked as best answer by bubba123 on Aug 7, 2023

GoldenBrown

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bubba123

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Reply 2 on: Aug 7, 2023
Excellent


Animal_Goddess

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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