The Value of Zero for Beta Coefficient of the Risk-Free

question 126

True/False

The value of zero for beta coefficient of the risk-free asset reflects not only its absence of risk but also the fact that the asset's return is unaffected by movements in the market return.

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Definitions:

Predictive Analytics

Predictive analytics involves using historical data, statistical algorithms, and machine learning techniques to forecast future trends or behavioral patterns.

Statistical Algorithms

A series of mathematical procedures that process data to identify patterns, trends, or relationships among variables.

Historical Data

Information collected about past events and conditions pertaining to a particular subject.

Nonresponse Error

Bias introduced in survey results when a significant number of invited participants decide not to respond.