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.

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Definitions:

Sweat Gland

Usually means structure that produces a watery secretion called sweat. Some sweat glands, however, produce viscous organic secretions; also called sudoriferous gland.

Enteric Neuron

A type of neuron found in the enteric nervous system, which governs the function of the gastrointestinal system.

Enteric Motor

Refers to the components of the enteric nervous system that control the motor functions of the gastrointestinal system.

Enteric Interneuron

Neurons located within the gut wall that communicate between the different layers of the gastrointestinal tract, aiding in its regulation and function.