The Risk-Free Rate Is 5% and the Expected Return on the Market

question 6

Multiple Choice

The risk-free rate is 5% and the expected return on the market portfolio is 13%.A stock has a beta of 0,what is its expected return?

• A) 0%
• B) 5%
• C) 13%
• D) none of the above

---

Definitions:

Ivan Pavlov

A Russian physiologist known for his work in classical conditioning, particularly his experiments with dogs that led to the discovery of the conditioned reflex.

Jean Piaget

A Swiss psychologist best known for his pioneering work in child development and his theory of cognitive development.

William James

A pioneering American psychologist and philosopher known for his work in pragmatism and functionalism, as well as for being a co-founder of the field of psychology in the United States.

Biopsychosocial Approach

An integrated approach that incorporates biological, psychological, and social-cultural levels of analysis in understanding health and illness.