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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Definitions:

Inferior Mesenteric Artery

A major artery that supplies blood to the lower regions of the colon and the rectum.

Abdominal Aorta

The abdominal aorta is the largest artery in the abdominal cavity that supplies oxygenated blood to many of the abdominal and pelvic organs and the legs.

Gonadal Artery

An artery that supplies blood to the gonads, such as the testicular artery and ovarian artery.

Superior Mesenteric Artery

A major artery of the abdomen that supplies blood to a large portion of the small intestine and part of the large intestine.