A Security That Has a Beta of Zero Will Have

question 9

Multiple Choice

A security that has a beta of zero will have an expected return of:

• A)zero.
• B)the market risk premium.
• C)the risk free rate.
• D)less than the risk free rate but not negative.
• E)less than the risk free rate which can be negative.

---

Definitions:

Phylogenetic Trees

Diagrams that represent the evolutionary relationships among various biological species or other entities, based upon similarities and differences in their physical or genetic characteristics.

Systematists

Systematists are scientists who study the classification and evolutionary relationships among organisms, organizing them into systems of taxonomy.

Evolutionary Relationships

Descriptions of how different species are connected to each other through common ancestors, detailing the path of divergence and speciation.

Convergent Evolution

A process where organisms not closely related independently evolve similar traits as a result of having to adapt to similar environments or ecological niches.