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:

Disbursements

Payments made by a business, often involving the outflow of cash for expenses or investments.

Weekly Interest Rate

The interest rate applied to a loan or savings, calculated and compounded on a weekly basis.

Average Daily Receipts

The average amount of cash received by a business each day over a specific period, often used to gauge the company's liquidity and cash flow efficiency.

Collection Delay

The time lag between when a company issues an invoice and when it actually receives payment from the customer.