Yes, if the portfolio's beta is equal to zero. In practice, however, it may be impossible to

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Yes, if the portfolio's beta is equal to zero. In practice, however, it may be impossible to find individual stocks that have a nonpositive beta. In this case it would also be impossible to have a stock portfolio with a zero beta. Even if such a portfolio could be constructed, investors would probably be better off just purchasing Treasury bills, or other zero beta investments.

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Financial Management Theory And Practice

ISBN: 9780324259681

11th Edition

Authors: Eugene F Brigham, Michael C Ehrhardt

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