A beta coefficient of +1 represents an asset that ________.
A)has a higher expected return than the market portfolio
B)has the same expected return as the market portfolio
C)has a lower expected return than the market portfolio
D)is unaffected by market movement

Question

Quizplus · Accepted Answer

A beta coefficient of +1 indicates that the asset's returns are expected to move in line with the market portfolio, implying the same level of systematic risk and expected return as the market.

A Beta Coefficient of +1 Represents an Asset That ________