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

question 2

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

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Definitions:

Summer Evenings

Describes the period of the day after sunset during the summer months, often characterized by cooler temperatures and leisure activities.

Microeconomics

The branch of economics that focuses on the actions of individuals and industries, like the dynamics between buyers and sellers, borrowers and lenders.

Macroeconomics

A branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole, including unemployment, inflation, and economic growth.

Decision-Making Units

Groups or individuals within an organization that have the authority and responsibility to make choices that affect the organization's operations.