contestada

For each 1% change in the market portfolio’s excess return, the investment’s excess return is expected to change by _______ due to risks that it has in common with the market.

Respuesta :

osondumartins

Options:

a.

cannot say for sure

b.

beta

c.

alpha

d.

zero

Answer:

B. Beta

Explanation:Excess returns is a term used in Financial accounting to describe how well an investment fund has either over-performed or under-performed against the standards through which the investment fund is compared,excess fund is also known as ALPHA.

Beta percent is a term used to describe how risky an investment portfolio is compared to other Investments, IT IS A VITAL TERM IN DETERMINING WHICH FUTURE DECISIONS WILL BE TAKEN.

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