Question: Question 12 3 pts Safety Inc. has an expected return of 0%. If treasury bills return 5% and the market risk premium is positive, what
Question 12 3 pts Safety Inc. has an expected return of 0%. If treasury bills return 5% and the market risk premium is positive, what must be true about Safety's beta? Would anyone buy this stock? O Beta is negative; no, the stock is expected to earn zero return Beta is positive; yes, the stock can be used as a hedge O Beta is positive, no, the stock is expected to earn zero return O Beta is negative: yes, the stock can be used as a hedge
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