A Stock with a Beta of Zero Would Be Expected

question 1

Multiple Choice

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

• A) have a rate of return equal to the risk-free rate.
• B) have a rate of return equal to the market rate.
• C) have a rate of return equal to zero.
• D) have a rate of return equal to the one.

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Definitions:

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Kinds of Power

Various forms of influence or control individuals or groups can exert over others, such as coercive, reward, legitimate, expert, and referent power.

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Acting in ways consistent with what society and individuals typically think are good values.

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