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:

Mexico

A country in North America, known for its rich cultural heritage, diverse landscapes, and history that encompasses ancient civilizations, colonial periods, and modern development.

Nativism

The political policy of promoting the interests of native inhabitants against those of immigrants, including by supporting immigration-restriction measures.

Liberty Party

Abolitionist political party that nominated James G. Birney for president in 1840 and 1844; merged with the Free Soil Party in 1848.

Political Movement

A collective effort by a group of people to advance their shared political, social, or ideological objectives.