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:

Neutral Third Party

An impartial individual or entity involved in a negotiation or conflict resolution who does not favor any side involved in the dispute.

Negotiation

A dialogue between parties intended to reach a beneficial outcome over a conflict, disagreement, or deal.

Arbitrations

A method of resolving disputes outside the courts, where the parties involved present their case to a neutral third party for a decision.

Trials

Formal judicial proceedings where disputes are resolved and judgments are made based on evidence presented.