A Stock with a Beta of Zero Would Be Expected

question 114

Multiple Choice

A stock with a beta of zero would be expected to have a rate of return equal to:

• A)the risk-free rate.
• B)the market rate.
• C)the prime rate.
• D)the average AAA bond.
• E)None of the above.

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Definitions:

Double-blind

A study or clinical trial design in which neither the participants nor the experimenters know who is receiving a particular treatment, to prevent bias.

Dependent Variable

A variable that an experimenter predicts will be affected by manipulations of the independent variable.

Experimenter's Manipulations

The deliberate changes or variations introduced by researchers in an experiment to investigate their effects on the outcome.

Extraneous Variable

Any variable that is not intentionally studied in the experiment which can affect the outcome of the research if not controlled.