Asset P Has a Beta of 0

question 136

Multiple Choice

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

• A) 6.0 percent.
• B) 10 percent.
• C) 5.4 percent.
• D) 13.4 percent.

---

Definitions:

Social Loafing

The phenomenon where individuals exert less effort when working in a group than when working individually.

Group Task

A collaborative effort where individuals come together to achieve a specified goal or complete a project.

Less Effort

Refers to situations or tasks that require minimal physical or mental exertion.

Groupthink

A psychological phenomenon where the desire for harmony in a decision-making group results in an irrational or dysfunctional decision outcome.