Shares with a beta of 1.0 would on average earn the risk-free rate.

Name: Shares with a beta of 1.0 would on average earn the risk-free rate.
Brand: Quizplus
Rating: 4.9 (34 reviews)

Question

Quizplus · Accepted Answer

Shares with a beta of 1.0 are expected to move with the market, not necessarily earn the risk-free rate. The risk-free rate is typically earned by investments considered to have no risk, such as government bonds, not by equities which are subject to market risk.

Shares with a Beta of 1