Which One of the Following Has the Highest Expected Risk

question 39

Multiple Choice

Which one of the following has the highest expected risk premium?

• A)stock portfolio with a beta of 1.06
• B)U.S. Treasury bill
• C)individual stock with a beta of 1.46
• D)a stock mutual fund with a beta of .89
• E)individual stock with a beta of .94

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Definitions:

Surgical Sponge

A sterile, absorbent pad or cloth used in surgery to absorb blood and other fluids, ensuring a clean surgical field.

Compensatory Damages

Monetary compensation awarded to a plaintiff to cover the actual loss, damage, or injury suffered as a result of the defendant's actions.

Reimburse

To pay back or compensate someone for money spent or expenses incurred on your behalf.

Plaintiff Losses

Damages or costs incurred by the plaintiff in a legal case, which they seek to recover through litigation.