The Beta for the Risk-Free Investment Is Closest To

question 3

Multiple Choice

The beta for the risk-free investment is closest to:

• A)1.
• B)0.
• C)Unable to answer this question without knowing the risk-free rate.
• D)Unable to answer this question without knowing the market's volatility.

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Definitions:

Average Longevity

The average duration of life of a person or organism, often calculated within a specific population or species.

Gestation

The period of time between the conception and birth of an organism, often referring to pregnancy in humans.

Linear Model

A mathematical model that assumes a linear relationship between input variables (independent variables) and a single output variable (dependent variable).

Scatterplot

A scatterplot is a type of graph used in statistics to display the relationship between two numerical variables, with data points represented as dots in a two-dimensional space.