What Is the Expected Return of a Zero-Beta Security

question 143

Multiple Choice

What is the expected return of a zero-beta security?

• A)The market rate of return.
• B)Zero rate of return.
• C)A negative rate of return.
• D)The risk-free rate.
• E)None of the above.

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Definitions:

Debts Dischargeable

Obligations that can be eliminated through bankruptcy, meaning the debtor is no longer legally required to pay them.

Chapter 13

A type of bankruptcy in the United States that allows individuals with regular income to develop a plan to repay all or part of their debts under court supervision.

Debtor's Total Obligations

This encompasses all debts and financial commitments that a debtor is responsible for repaying, including loans, bills, and other liabilities.

Chapter 13

Chapter 13 refers to a bankruptcy chapter under the U.S. Bankruptcy Code that allows individuals with a regular income to develop a plan to repay all or part of their debts under court supervision.