Which statement is most correct concerning the beta of the


Which statement is MOST CORRECT concerning the Beta of the Market Portfolio (BM )?

a. BM = 1 since the Covariance(RM,RM) / Variance(RM) = 1

b. (-1) < BM < (+1)

c. BM is indexed to be 1.0 for any period over which it is measured.

d. BM is approximately, or most often 1.0

e. BM is 1.0 if CAPM holds, since the Security Market Line equation implies algebraically that in an efficient market BM = 1

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Which statement is most correct concerning the beta of the
Reference No:- TGS01466390

Expected delivery within 24 Hours