Question: A stock with a beta of zero would be expected to have a rate of return equal to Group of answer choices the prime rate.

A stock with a beta of zero would be expected to have a rate of return equal to

Group of answer choices

the prime rate.

the average AAA bond.

the market rate.

the risk-free rate.

zero.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Go back and quickly review the rules that the Sarbanes-Oxley Act of 2002 placed on the auditing profession as described in this chapter. What do you think are the two or three main purposes of these...

Q:

Amortizing a mortgage loan means that the equity in the house declines as the loan is paid down. the balance of the loan is reduced with each payment. a long - term is converted to a short - term...

Q:

1. A stock with a beta of zero would be expected to have a rate of return equal to A.the risk-free rate. B.the market rate C.the prime rate. D.the average AAA bond. E. None of the above 2. Both the...

Q:

You bought 100 shares of stock at $20 each At the end of the year, you received a total ot $400 in dividends, and your stock was worth $2, 500 total. What was your total percentage return? 20% 45%...

Q:

4. If the expected return to the market portfolio is 12%, the risk-free rate is 4%, then what is the market risk premiumn? A) 8% B) 12% C) 16% D) 1% E) Not enough information to tell. Question 5 (2.5...

Q:

Question 20 1 pts A stock with a beta of zero would be expected to have a rate of return equal to: the risk free rate zero. the average AAA bond. the prime rate the market rate. > Question 21 1 pts...

Q:

A stock with a beta of zero would be expected to have a rate of return equal to: a. US Tbill rate b. market rate c. S&P 500 rate d. average corporate AAA bond rate e. average municipal AAA bond rate.

Q:

Which of the following is NOT TRUE? 1.When the correlation coefficient between the returns on two securities is equal to 1, the risk of a portfolio is equal to the weighted average of the total risk...

Q:

Which of the following is NOT TRUE? 1.When the correlation coefficient between the returns on two securities is equal to 1, the risk of a portfolio is equal to the weighted average of the total risk...

Q:

A stock with a beta of zero would be expected to have a rate of return equal to: A stock with a beta of zero would be expected to have a rate of return equal to: the market risk premium. the risk -...

Q:

Suppose you are the money manager of a $10 million investment fund. The fund consists of 2 stocks with the following investment and betas. Assume that the CAPM holds, and k RF =6%, k M =14%. Stock...

Q:

Prepare a trial balance Transaction Journal Entries 1 Paid monthly rent of $400. 2 Received $800 from customers when service was rendered. 3 Issued common stock to investors for $20,000. 4 Billed...

Q:

In a paper, provide one example of the PDCA in use or should be used in company in the Kingdom of Saudi Arabia and answer this question based on that organization. Explain the situation in which PDCA...

Q:

A company reported the following data: EBIT: $100,000 EBITDA: $125,000 Interest expense: $24,000 Tax rate: 25% Based on the reported data, what is NOPAT

Q:

Scientific Molded Products Inc. prepared the following factory overhead cost budget for the Trim Department for August 2010, during which it expected to use 10,000 hours for production: Scientific...

Q:

Property Tax Calculations and Journal Entries. The Village of Darbys budget calls for property tax revenues for the fiscal year ending December 31, 2011, of $2,660,000. Village records indicate that,...

Q:

Pagnucci Carecenters Inc. provides financing and capital to the health-care industry, with a particular focus on nursing homes for the elderly. The following selected transactions relate to bonds...

Q:

If a firm goes from zero debt to successively higher levels of debt, why would you expect its stock price to rise first, hit a peak, and then begin to decline?

Q:

Define cash conversion cycle (CCC). Explain why, holding other things constant, a firms profitability would increase if it lowered its CCC.

Q:

A company XYZ strives to deliver its product to its customer exactly on the due date as promised. The company XYZ is most likely focusing on which one of the competitive dimensions? Question 4...

Q:

What specific recommendations would you give Johnson? Are there any programs or initiatives that you would suggest?

Q:

What can PMT do to improve its safety practices and policies?

Q:

In preparing to negotiate an agreement with a union, what types of information would you gather before arriving at the bargaining table?