The market value weightedaverage beta of firms included in t

The market value weighted-average beta of firms included in the market index will always be _____________.

none of these options (There is no particular rule concerning the average beta of firms included in the market index.)

0

between 0 and 1

1

Solution

Beta of market index is always 1, So, the market value weighted-average beta of firms included in the market index will always be equal to 1.

So, beta is always equal to 1.