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Anit [1.1K]
3 years ago
14

Risk-free assets have a beta of 0 and the market portfolio has a beta of 1. true or false true false

Business
1 answer:
zubka84 [21]3 years ago
8 0

Answer: true

Explanation:

The term risk free assets are the assets that are secure because they are expected to bring about a return while the Beta is used to know the volatility of a portfolio when it is compared to the entire market.

Risk-free assets typically have zero beta since they're risk free. Therefore, risk-free assets have a beta of 0 and the market portfolio has a beta of 1 is true.

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You are considering buying a stock with a beta of 3.05. If the risk-free rate of return is 8.0%, and the expected return for the
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7 0
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