The Beta for the Risk-Free Investment Is Closest To

question 3

Multiple Choice

The beta for the risk-free investment is closest to:

• A)1.
• B)0.
• C)Unable to answer this question without knowing the risk-free rate.
• D)Unable to answer this question without knowing the market's volatility.

---

Definitions:

Stratified Random Sample

A stratified random sample is a sampling method that divides the population into smaller groups, or strata, and randomly selects samples from each stratum.

Simple Random Sample

A subset of a statistical population in which each member has an equal probability of being chosen, ensuring a representative sample.

Videocassette Recorders

A device used for recording and playing back video content on magnetic tape cassettes.

Nonresponse Error

A bias in survey results that happens when the answers of respondents differ from the potential answers of those who did not answer.