Question
Under what circumstances would the Beta of the MARKET be a value other than 1.0? a. If prices were more or less risky, the Beta
Under what circumstances would the Beta of the MARKET be a value other than 1.0?
a. If prices were more or less risky, the Beta of the Market might be different than 1.0.
b. If historical values do not imply future values, then the Beta of the Market might be different than 1.0.
c. Never, the Beta of the Market will always be 1.0.
d. If people's aversion to risk (Risk Aversion, dislike for taking risk) changes, the Beta of the Market might be different than 1.0.
e. On days ending in "y" (like, as in "MONDAY"), the Beta of the Market might be other than 1.0.
f. If the market is especially volatile (the prices change rapidly), the Beta of the Market might be different than 1.0
g. If the Variance and Standard Deviation of returns are different, then the Beta of the Market might be other than 1.0. h. If the EXPECTED RETURN does not equal the REQUIRED RETURN, then the Beta of the Market might be a value other than 1.0.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started