A Stock with a Beta of Zero Would Be Expected

question 60

Multiple Choice

A stock with a beta of zero would be expected to:

• A) Have a rate of return equal to zero
• B) Have a rate of return equal to the market risk premium
• C) Have a rate of return equal to the risk-free rate
• D) Have a rate of return equal to the market rate of return

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Definitions:

Recorded

This term refers to the action of documenting financial transactions in the accounting records of a business.

Statement of Financial Position

A financial statement that presents the assets, liabilities, and equity of an entity at a specific date, offering a snapshot of its financial health.

Chart of Accounts

A systematic listing of all accounts used by an organization, making up its general ledger and helping categorize transactions.

Account Numbers

Unique identifiers assigned to individual accounts within a financial recording system to differentiate and track financial transactions.