One Would Expect a Stock with a Beta of Zero

question 6

Multiple Choice

One would expect a stock with a beta of zero to have a rate of return equal to

• A)zero.
• B)the market risk premium.
• C)the risk-free rate.
• D)the market rate of return.

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Definitions:

Vulnerable

Susceptible to physical or emotional attack or harm.

Developing Nervous System

The growth and maturation process of the nervous system, which includes the formation of neural connections and refinement of neural pathways.

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Below-Average Intelligence

A level of intellectual functioning that is significantly lower than the average for a person's age group.