Asset P Has a Beta of 0

question 132

Multiple Choice

Asset P has a beta of 0.9. The risk-free rate of return is 8 percent, while the return on the market portfolio of assets is 14 percent. The asset's required rate of return is

• A) 13.4 percent.
• B) 6.0 percent.
• C) 5.4 percent.
• D) 10 percent.

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