If the Beta for Stock a Equals Zero,then

question 120

Multiple Choice

If the beta for stock A equals zero,then

• A) stock A's required return is equal to the required return on the market portfolio.
• B) stock A's required return is equal to the risk-free rate of return.
• C) stock A has a guaranteed return.
• D) stock A's required return is greater than the required return on the market portfolio.

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Definitions:

DDT

Dichloro-Diphenyl-Trichloroethane, a synthetic insecticide known for its environmental persistence and its role in the decline of certain wildlife populations before restrictions were placed on its use.

Second-Generation Pesticides

Pesticides developed to overcome resistance or environmental concerns associated with first-generation pesticides, often designed to be more targeted or biodegradable.

Spiders

Arachnids characterized by eight legs, typically spinning webs to capture prey, and playing a significant role in controlling insect populations.

Spruce Budworm

A destructive North American caterpillar that infests conifer forests, notably spruce and fir trees, causing significant damage to these ecosystems during outbreak periods.