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The market portfolio is currently generating a rate of return of 15%. You are analyzing portfolio XYZ for which you've measured the required return to
The market portfolio is currently generating a rate of return of 15%. You are analyzing portfolio XYZ for which you've measured the required return to be 12%. Based on this information, which one of the following must be true?
(A) The beta of the market portfolio must be 3.0
(B) The risk free rate of return must be 3%.
(C) The beta of portfolio XYZ must be less than 1.0
(D) Portfolio XYZ is highly affected by swings in the market.
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