According to the capital asset pricing model, what is the expected return on a security with a beta of zero? Multiple choice question. Zero The return on the market The market-risk premium The risk-free rate of return

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter3: Risk And Return: Part Ii
Section: Chapter Questions
Problem 8MC
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According to the capital asset pricing model, what is the expected return on a security with a beta of zero?

Multiple choice question.

Zero

The return on the market

The market-risk premium

The risk-free rate of return

 

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