Peter Lynch's thumb rule for investing using PEG is:

	A.	Buy if the PEG ratio is lower than 1
	B.	Buy if PEG ratio is higher than 1
	C.	Buy if PEG ratio is exactly equal to 1
	D.	Never use PEG ratio since estimating PEG is never without large estimation errors.

What is the expected return of a zero-beta security?

	A.	Market rate of return
	B.	Risk-free Rate
	C.	Zero
	D.	Can't say since we need the Market Risk Premium to apply CAPM.