A Risky Asset Has a Beta of 0

question 81

Multiple Choice

A risky asset has a beta of 0.90 and an expected return of 7.4 percent.What is the reward-to-risk ratio if the risk-free rate is 2.69 percent?

• A) 4.04 percent
• B) 5.23 percent
• C) 6.51 percent
• D) 8.41 percent
• E) 11.59 percent

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Definitions:

Decedent

A person who has died, especially in context relating to the disposal of their estate.

Gift

The voluntary and gratuitous transfer of property or funds from one person to another without any expectation of receiving something in return.

Lost Property

Items that have been unintentionally left by their owner at a location they do not remember.

Negotiable Electronic Document

Electronic records that can be transferred from one party to another, assuming certain legal rights and obligations akin to a traditional paper document.