The Risk Free Asset Can Be Expected to Have a Beta

question 2

Multiple Choice

The risk free asset can be expected to have a beta of ______________

• A)1
• B)- 1
• C)0
• D)The expected return on the market minus the risk free rate

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Definitions:

Dismiss

To terminate or end something formally, such as employment or legal actions.

Employer

An individual or organization that hires people to work for them in exchange for wages or salary.

Employee

An individual who is hired to perform work or services for another entity (the employer) under agreed conditions in exchange for compensation.

Wrongful Dismissal Action

A legal action taken by an employee against an employer for termination of employment without proper legal reason or notice.