One would expect a stock with a beta of zero to have a rate of return equal to
A) zero.
B) the market risk premium.
C) the risk-free rate.
D) the market rate of return.
Correct Answer:
Verified
Q30: The presence of a risk-free asset enables
Q31: Suppose the beta of Amazon is 2.2,
Q32: The Sharpe ratio is defined as
A)(rP −
Q33: The beta of the market portfolio is
A)0.0.
B)+0.5.
C)−1.0.
D)+1.0.
Q34: The capital asset pricing model (CAPM)states which
Q36: Suppose the beta of ExxonMobil is 0.65,
Q37: Suppose the beta of Microsoft is 1.13,
Q38: The graphical representation of the CAPM (capital
Q39: A common criticism of the CAPM is
Q40: The beta of Treasury bills is
A)+1.0.
B)+0.5.
C)−1.0.
D)0.0.
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