A Security That Has a Beta of Zero Will Have

question 9

Multiple Choice

A security that has a beta of zero will have an expected return of:

• A)zero.
• B)the market risk premium.
• C)the risk free rate.
• D)less than the risk free rate but not negative.
• E)less than the risk free rate which can be negative.

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Definitions:

Business Communication Problems

Issues that arise in the transmission of information within a business context, potentially leading to misunderstandings or inefficiencies.

Heuristics

Mental shortcuts or rules of thumb that simplify decision making or problem-solving, often based on practical experience rather than formal logic.

Standardized Solutions

Predefined responses or strategies developed to address common issues or requirements in a consistent manner.

Communication Contexts

Communication contexts refer to the various environments or situations in which communication occurs, shaping the way messages are sent, received, and interpreted.