Asset P Has a Beta of 0

question 55

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) 22.0 percent
• C) 15.4 percent
• D) 6.0 percent

---

Definitions:

Auditory Localization

The ability to identify the location of a sound source in a three-dimensional space.

Auditory Source Monitoring

The cognitive process of identifying the origin of sounds, distinguishing between different auditory sources, and determining which sounds are external and which are self-generated.

Balancing

The act of maintaining stability or equilibrium in physical, emotional, or situational contexts.

Frequency

The rate at which a repeating event occurs, such as the number of occurrences within a defined time period.