In the CAPM World, a Security with a Beta of Zero

question 33

Multiple Choice

In the CAPM world, a security with a beta of zero has an expected return equal to the ________ rate of return.

• A) negative
• B) zero
• C) market
• D) risk free

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Definitions:

Cecum

The first section of the large intestine, acting as a junction between the small intestine and the large intestine.

White Blood Cells

Cells of the immune system involved in protecting the body against both infectious disease and foreign invaders.

Germinal Center

A region within lymph nodes where mature B cells proliferate, differentiate, and mutate their antibody genes during an immune response.

Efferent Vessel

An efferent vessel is a lymphatic or blood vessel that carries fluid away from an organ or tissue, opposite to an afferent vessel which brings fluid to it.