A Security That Has a Beta of Zero Will Have

question 18

Multiple Choice

A security that has a beta of zero will have an expected return of:

• A) zero.
• B) the market risk premium.
• C) the risk free rate.
• D) less than the risk free rate but not negative.
• E) less than the risk free rate which can be negativE.

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Definitions:

Human Learning

The process through which individuals acquire new knowledge, skills, behaviors, attitudes, or values.

Punishment

A consequence that decreases the likelihood of a behavior being repeated, often used in the context of discipline or behavioral modification.

Reinforcer

Any stimulus that strengthens or increases the probability of a specific response or behavior by providing a consequence an individual finds rewarding.

Change Her Behavior

The process or act of modifying an individual's actions or reactions through various methods, such as reinforcement or punishment.