The Beta of a Risk-Free Asset

question 14

Multiple Choice

The beta of a risk-free asset:

• A)is equal to zero.
• B)is equal to -1.
• C)is equal to 1.
• D)can take any value greater than 0.

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Definitions:

Ventilate

To provide with a supply of fresh air by allowing air to flow through a space, often through natural or mechanical means.

Respire

The process by which living organisms take in oxygen and release carbon dioxide, involved in energy production.

Gas Exchange

The biological process through which organisms, such as plants and animals, exchange gases with their environment, involving oxygen and carbon dioxide.

Book Lungs

Respiration organs found in arachnids, such as spiders and scorpions, consisting of stacked plates resembling the pages of a book.