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:

Job-Related Criteria

The standards or qualifications required for performing a specific job, including skills, experience, and education.

Halo Effect

A cognitive bias where an individual's overall impression influences their judgment about specific traits or abilities.

Personal Opinion

An individual’s view or judgment formed about something, not necessarily based on fact or knowledge.

Contrast Error

A bias in performance appraisal that occurs when evaluations are influenced by comparing employees against each other instead of against objective standards.