Asset P Has a Beta of 0

question 6

Multiple Choice

Asset P has a beta of 0.9. The risk- free rate of return is 8%, while the return on the market portfolio of assets is 14%. The asset's required rate of return is

• A) 13.4%
• B) 5.4%
• C) 10%
• D) 6%

---

Definitions:

Laughter

The involuntary reaction to certain stimuli, characterized by the rhythmical, audible contraction of the diaphragm and other parts of the respiratory system.

Infants

Very young children, typically under one year of age, who are in the earliest stage of human life.

Day Care

A service offering care and supervision for children during the daytime, especially to allow parents or guardians to work or fulfill other commitments.

Researchers

Individuals engaged in conducting studies and investigations to acquire new knowledge or validate existing knowledge in various fields.