A beta of zero means:
A) no market risk (risk-free security).
B) less market risk than the average security.
C) more market risk than the average security.
D) negative correlation with the market return.
E) market risk the same as the average security.

Question

Quizplus · Accepted Answer

A beta of zero indicates that the security's returns are not correlated with the market's returns, implying it has no market risk and is considered a risk-free security.

A Beta of Zero Means