A stock with a beta of zero would be expected to:
A. have a rate of return equal to the risk-free rate.
B. have a rate of return equal to the market rate.
C. have a rate of return equal to zero.
D. have a rate of return equal to the one.
Answer:A
A stock with a beta of zero would be expected to:
A. have a rate of return equal to the risk-free rate. B. have a rate of return equal to the market rate. C. have a rate of return equal to zero. D. have a rate of return equal to the one.