Question: please show formula and work to explain why its B please e Exercises 1) Suppose the stock beta is zero, the risk-free rate is 4%
e Exercises 1) Suppose the stock beta is zero, the risk-free rate is 4% and the expected return on the market portfolio is 6%, then the expected return on the stock is A) equal to the market rate of return B) equal to the risk-free rate C) equal to zero D) equal to the inflation rate 1)
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