What Is the Beta for a Security Whose Returns Do

question 108

Multiple Choice

What is the Beta for a security whose returns do not vary across states of nature (a risk-free security) ?

• A) 0
• B) Between 0 and 1
• C) 1
• D) > 1
• E) < 0

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Definitions:

Financial Literacy

The ability to understand and use various financial skills, including personal financial management, budgeting, and investing.

Whistle-Blowers

Individuals who expose illegal practices or unethical conduct within an organization to the authorities or the public.

Antitrust Laws

Laws designed to promote fair competition for the benefit of consumers, preventing monopolies and other activities that could restrict trade.

Competitive Strategies

Approaches adopted by businesses to gain a competitive edge over rivals, including differentiation, cost leadership, and focus strategies.