Tommaso
Sat Aug 17 2024
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5 answers
1113
Why is market beta always 1?
Excuse me, but could you elaborate on why the market beta is consistently equal to 1? I'm curious to understand the rationale behind this phenomenon. Does it have something to do with the nature of the market itself, or is it a result of a specific mathematical calculation? Is there any scenario where the market beta could deviate from this value? I'd appreciate any insights you could provide to help me better comprehend this concept.
