Question
Assuming the single-factor APT model applies, the factor beta for the market portfolio is: zero. one. the average of the risk-free beta and the beta
Assuming the single-factor APT model applies, the factor beta for the market portfolio is:
| zero. | ||
| one. | ||
| the average of the risk-free beta and the beta for the highest risk security in the portfolio. | ||
| impossible to calculate without collecting sample data. | ||
| irrelevant to the model. |
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Financial Management Theory and Practice
Authors: Eugene F. Brigham, Michael C. Ehrhardt
16th edition
1337902608, 978-1337902601
