A Security Has an Expected Rate of Return of 0

question 87

Multiple Choice

A security has an expected rate of return of 0.13 and a beta of 2.1.The market expected rate of return is 0.09 and the risk-free rate is 0.045.The alpha of the stock is

• A)-0.95%.
• B)-1.7%.
• C)8.3%.
• D)5.5%.
• E)none of the above.

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Definitions:

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The act of making information or documents available upon request, especially in contexts involving legal rights or obligations.

Interpretation Of The Law

The process of determining what the legal texts mean and how they apply to specific situations.

Notice-And-Comment Rulemaking

A process used by federal agencies in the United States to draft, propose, and establish new regulations, allowing for public input and responses before finalization.

Deference

A show of respect or submission to the judgment, opinion, or wishes of another, often in a legal or official context.