You find an asset that is expected to offer you the same return irrespective of the...

You find an asset that is expected to offer you the same return irrespective of the economic scenario and irrespective of the market return. What is the beta of this asset?

a. 0

b. 1

c. .5

d. none of the above because it needs to be determined

Solutions

Expert Solution

When returns of an asset does not change with changes in economic scenario, then beta of that asset is zero.

Therefore option a. 0 is correct.

jeff jeffy answered 2 years ago

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