A Stock with a Beta of 1

question 98

True/False

A stock with a beta of 1.0 would on average earn the risk-free rate.

---

Definitions:

Antecedent Debts

Debts that were incurred prior to a particular event or transaction.

Involuntary Petition

A legal document filed by creditors to initiate bankruptcy proceedings against a debtor without the debtor's consent.

Non-Profit

An organization whose primary objective is to support an issue or matter of private interest or public concern for non-commercial purposes, rather than earning profits for its owners or stakeholders.

Life Insurance Company

A financial institution that provides coverage on human lives, including death benefits to beneficiaries upon the death of the insured.