Use the following information to answer the question(s)below. The volatility of the market portfolio is 10%,the expected return on the market is 12%,and the risk-free rate of interest is 4%.
-The beta for the market is closest to:
A)0.80.
B)1.00.
C)1.10.
D)1.25.

Question

Use the following information to answer the question(s)below.  The volatility of the market portfolio is 10%,the expected return on the market is 12%,and the risk-free rate of interest is 4%.
-The beta for the market is closest to:
A)0.80. 
B)1.00. 
C)1.10. 
D)1.25.

Quizplus · Accepted Answer

The beta of the market is always 1. Therefore, the beta for the market in this scenario is closest to 1.

Use the Following Information to Answer the Question(s)below