Question: If the Beta for stock A equals zero, then ________. Select one: a. stock As required return is equal to the risk-free rate of return

If the Beta for stock A equals zero, then ________.

Select one:

a. stock As required return is equal to the risk-free rate of return

b. stock As required return is greater than the required return on the market portfolio

c. stock As required return is equal to the required return on the market portfolio

d. stock A has a guaranteed return

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:

If the Beta for stock A equals zero, then Select one: a. stock A's required return is greater than the required return on the market portfolio b. stock A's required return is equal to the required...

Q:

If the Beta for stock A equals zero, then Select one: a. stock A's required return is equal to the required return on the market portfolio b. stock A's required return is equal to the risk-free rate...

Q:

pleeeease help help me l have an exam Lion 17 If the Beta for stock A equals zero, then et ered ed out of Select one: O a. stock A has a guaranteed return b. stock A's required return is equal to the...

Q:

16. If the Beta for Stock X equals zero, then according to the CAPM a, stock X's required return is equal to the risk-free rate of return. b. stock X has a guaranteed return. c. stock X's required...

Q:

16. If the Beta for Stock X equals zero, then according to the CAPM: a, stock X's required return is equal to the risk-free rate of return. b. stock X has a guaranteed return. e. stock X's required...

Q:

estion 16 If the Beta for stock A equals zero, then vet wered ked out of Select one: a. stock A's required return is greater than the required return on the market portfolio b. stock A's required...

Q:

16. If the Beta for Stock X equals zero, then according to the CAPM LIFE TITLE a. stock X's required return is equal to the risk-free rate of return b. stock X has a guaranteed return. c. stock X's...

Q:

The appropriate measure for risk according to the capital asset pricing model is the standard deviation of a firm's cash flows. alpha. the standard deviation of a firm's stock returns. beta QUESTION...

Q:

1. Two considerations that cause a corporation's cost of capital to be different than its investors' required returns are a. corporate taxes and the earned income tax credit. b. individual taxes and...

Q:

f the beta for stock A equals zero, then A. stock A's required return is equal to the required return on the market portfolio. B. stock A's required return is equal to the risk-free rate of return....

Q:

How do formal workplaces differ from informal workplaces?

Q:

In this project, you are employed by Glo-Brite Paint Company. As the payroll clerk in the Accounting Department, you have been in charge of the payroll records since the company first began...

Q:

The FDIC is _ _ _ _ _ _ _ _ _ _ _ _ _ . A financial regulation specific to commercial banks. An independent agency that protects or insures depositor's money. A process for the value of a derivative....

Q:

The array below is to be sorted in ascending order. \ table [ [ 1 7 , 5 3 , 7 1 , 6 2 , 3 6 , 4 6 ] , [ 4 1 , 2 3 , 1 2 , , , ] ]