Question: Which of the following statement about beta is correct? It is a measure of portfolio total risk. Portfolio beta can be less than the weighted

Which of the following statement about beta is correct?

It is a measure of portfolio total risk.

Portfolio beta can be less than the weighted average of the beta of individual securities held in the portfolio.

Beta of a risky asset is equal to the correlation coefficient between the return of the risky asset and the return of the market portfolio.

Portfolio beta is computed as the weighted average beta of individual assets held in the portfolio.

Market portfolio has a beta of zero.

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