An aggressive (that is, higher risk) portfolio would have a beta of:
A)1
B)0
C)less than 1 but greater than 0
D)more than 1

Question

Quizplus · Accepted Answer

Beta measures the volatility of a stock or portfolio compared to the overall market. A beta of 1 means that the stock or portfolio has the same volatility as the market. A beta of less than 1 but greater than 0 indicates less volatility than the market, while a beta of more than 1 indicates higher volatility than the market. Therefore, an aggressive portfolio, which is expected to have higher risk and volatility, would have a beta of more than 1.

An Aggressive (That Is, Higher Risk) Portfolio Would Have a Beta