If a Stock Return Is Expected to Be the Same

question 134

Multiple Choice

If a stock return is expected to be the same as the expected return on the market, the stock's CAPM beta is ____.

• A)0.0
• B)0.5
• C)1.0
• D)undefined

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Definitions:

Deontological Approach

A theory in ethics that determines morality based on adherence to rules or duties, rather than the outcomes of actions.

Ethical Fundamentalism

The belief in absolute moral rules that apply universally, guiding actions and decision-making.

Utilitarianism

A philosophical theory that suggests the best action is the one that maximizes utility, usually defined as that which produces the greatest well-being of the greatest number of people.

Ethical Relativism

The philosophical view that moral standards, values, and judgments are not universal but are culturally and individually determined.