Ask Question
18 April, 03:41

Assuming the single-factor APT model applies, the factor beta for the market portfolio is:

a. zero.

b. one.

c. the average of the risk-free beta and the beta for the highest risk security in the portfolio.

d. impossible to calculate without collecting sample data.

e. irrelevant to the model.

+5
Answers (1)
  1. 18 April, 04:52
    0
    Answer: b. one.

    Explanation:

    the average of the risk-free beta and the beta for the highest risk security in the portfolio, is very hard and impossible to calculate without collecting sample data which are irrelevant to the model. If the Arbitrage pricing theory comes good, then the factor beta for the market portfolio would equal = 1
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Assuming the single-factor APT model applies, the factor beta for the market portfolio is: a. zero. b. one. c. the average of the risk-free ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers