Which of the Following Statements About the Risk-Free Asset Is

question 119

Multiple Choice

Which of the following statements about the risk-free asset is correct?

• A) The risk-free asset is defined as an asset for which there is uncertainty regarding the expected rate of return.
• B) The standard deviation of return for the risk-free asset is equal to zero.
• C) The standard deviation of return for the risk-free asset cannot be zero, since division by zero is undefined.
• D) Choices a and b.
• E) Choices a and c.

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