The Beta for the Risk-Free Investment Is Closest To

question 3

Multiple Choice

The beta for the risk-free investment is closest to:

• A)1.
• B)0.
• C)Unable to answer this question without knowing the risk-free rate.
• D)Unable to answer this question without knowing the market's volatility.

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Definitions:

Prediction

The act of forecasting or estimating future events based on current or past data.

Psychological Researchers

Individuals who study the human mind and behavior through various scientific methods and experiments.

General Principle

A fundamental truth, foundation, or doctrine that serves as the basis for a system of belief or behavior or for a chain of reasoning.

Separate Facts

The act of distinguishing or differentiating individual pieces of true information from opinions or interpretations.