If the Beta for Stock a Equals Zero,then

question 137

Multiple Choice

If the Beta for stock A equals zero,then

• A)stock A's required return is equal to the required return on the market portfolio.
• B)stock A's required return is equal to the risk-free rate of return.
• C)stock A has a guaranteed return.
• D)stock A's required return is greater than the required return on the market portfolio.

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Definitions:

Draft

A preliminary version of a piece of writing, document, or legislation that is subject to further revision and editing.

Drawer

The party that writes and signs a check, directing a bank to pay the check's amount to the person or entity named as the payee.

Drawee

The party on whom a check or draft is drawn, and who is expected to pay the amount specified.

Approach-approach Conflict

A psychological dilemma that occurs when an individual must choose between two desirable options.