A Stock with a Beta of Zero Would Be Expected

question 38

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:

Obturator Externus

A muscle situated on the outer surface of the pelvic bone which acts to rotate the thigh laterally.

Piriformis

A muscle in the gluteal region of the lower limb, involved in the rotation of the thigh and known for its relation to the sciatic nerve.

Inversion

A movement that tilts the sole of the foot towards the midline of the body, opposite to eversion.

Tibialis Anterior

A muscle in the anterior compartment of the leg responsible for dorsiflexion and inversion of the foot.