A Security That Has a Rate of Return That Exceeds

question 177

Multiple Choice

A security that has a rate of return that exceeds the Treasury bill rate but is less than the market rate of return must:

• A) Be a risk-free asset.
• B) Have a beta that is greater than 1.0 but less than 2.0.
• C) Be a risk-free asset with a beta less than.99.
• D) Be a risky asset with a standard deviation less than 1.0.
• E) Be a risky asset with a beta less than 1.0.

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