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A portfolio with a level of systematic risk that is the same as that of the market has a beta that is equal to one. less than zero. equal to zero. less than the beta of the
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40 votes
A portfolio with a level of systematic risk that is the same as that of the market has a beta that is equal to one. less than zero. equal to zero. less than the beta of the

User Yogesh Malpani
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27 votes
27 votes

Answer:

equal to one.

Step-by-step explanation:

Systemic risk are risk that are inherent in the economy. They cannot be diversified away. They are also known as market risk. examples of this risk include recession, inflation, and high interest rates. Investors should seek compensation for systemic risk. Systemic risk is measured by beta. The higher beta is, the higher the systemic risk and the higher the compensation demanded for by investors

The market has a beta of one. If a portfolio has the same level of systematic risk that is the same as that of the market, its beta would be equal to 1.

If the portfolio is less risky than the market, its beta would be less than one

If the portfolio is more risky than the market, its beta would be greater than one

User Saurabh Nemade
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