The expected impact of unanticipated macroeconomic events on a security's return during the period is
A) included in the security's expected return.
B) zero.
C) equal to the risk-free rate.
D) proportional to the firm's beta.
E) infinite.

Question

Quizplus · Accepted Answer

Unanticipated macroeconomic events are unexpected and thus not included in the security's expected return, making their expected impact zero.

The Expected Impact of Unanticipated Macroeconomic Events on a Security's