Which One of These Statements Is True

question 67

Multiple Choice

Which one of these statements is true?

• A)The betas used in the CAPM must be greater than 1 but less than 2.
• B)By convention,the market is given a beta of zero.
• C)There is zero chance of default on a U.S.Treasury bill.
• D)A U.S.Treasury bill has a beta of zero.
• E)The rate of return on a U.S.Treasury bill is used as the value of RM in the CAPM.

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Definitions:

Homozygous Dominant

A genetic condition where an individual has two dominant alleles of a particular gene, resulting in the expression of the dominant trait.

Homozygous Recessive

A genetic condition where an individual has two copies of a recessive allele for a particular trait.

Genetic Drift

A mechanism of evolution that involves random changes in the frequency of alleles within a population across generations.

Allele Frequencies

The proportion of all copies of a gene in a particular population that are of a given allele type.