Which One of the Following Has the Highest Expected Risk

question 39

Multiple Choice

Which one of the following has the highest expected risk premium?

• A)stock portfolio with a beta of 1.06
• B)U.S. Treasury bill
• C)individual stock with a beta of 1.46
• D)a stock mutual fund with a beta of .89
• E)individual stock with a beta of .94

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Definitions:

Atypical Antipsychotic Drugs

A class of medications used to treat psychiatric conditions, which are less likely to cause certain side effects compared to typical antipsychotics.

Diabetes

A metabolic disease characterized by high blood sugar levels due to the body's inability to produce or effectively use insulin.

Cardiovascular Problems

Health issues related to the heart and blood vessels, including heart disease, hypertension, and stroke.

Atypical Antipsychotic

A class of medication primarily used to treat psychiatric conditions, with fewer side effects compared to older antipsychotic drugs.