What Is the Beta of a Risk-Free Security

question 5

Multiple Choice

What is the beta of a risk-free security?

• A).00
• B).50
• C)1.00
• D)1.50
• E)2.00

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Definitions:

Recessions

A brief era of economic contraction observed through lessened trade and industry efforts, frequently identified by a successive quarterly GDP decrease.

Consumer Spending

Consumer spending is the total amount of money spent by households and individuals on goods and services within an economy over a period of time.

Recession

A quick phase of economic reduction, where industrial and trade dynamics slow down, typically delineated by a GDP decrease in two consecutive quarters.

Civil War

A war between groups within the same country or state, often stemming from political, social, or ethnic differences.