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By definition, which of the following is correct regarding the beta of the market? a. The market beta will be less than 1 as the
By definition, which of the following is correct regarding the beta of the market?
a. | The market beta will be less than 1 as the market portfolio is generally more diversified than an individuals portfolio. | |
b. | The market beta will be great than 1 as the market portfolio is generally more diversified than an individuals portfolio.B | |
c. | The market beta will depend on the composition of the market portfolio and could be greater than or less than 1. | |
d. | The market beta will be equal to 1 given that it is the portfolio containing all assets. |
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