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:

Comparative Balance Sheet

A financial statement that presents a company's financial position at different points in time side-by-side to assess changes in assets, liabilities, and equity.

Cash Dividend

A cash dividend is a payment made by a company to its shareholders, typically from its profits, in the form of cash or electronic funds transfer.

Financing Activities

Transactions and events involving changes in equity and debt in the financial structure of a company, such as issuing shares or taking loans.

Comparative Balance Sheet

A financial statement that presents the assets, liabilities, and shareholders’ equity of a company at two or more different points in time, used to analyze trends in financial position.