A Stock with a Beta of Zero Would Be Expected

question 53

Multiple Choice

A stock with a beta of zero would be expected to have a rate of return equal to

• A)the prime rate.
• B)the average AAA bond.
• C)the market rate.
• D)the risk-free rate.
• E)zero.

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Definitions:

Introversion

A personality trait characterized by a preference for solitary activities and inward-focused experiences, as opposed to seeking stimulation from external sources.

Anxiety

An emotion of anxiety or restlessness, often experienced in anticipation of a forthcoming event or due to the unpredictable nature of its result.

Snowball Sampling

A non-probability sampling technique where existing study subjects recruit future subjects from among their acquaintances, thus the sample group appears to grow like a rolling snowball.

Random Assignment

Participants are equally likely to experience the experimental or control condition.