Beta for stock AAA=0, so, A) stock AAA's return = the return of the market portfolio. B) stock AAA's required return = the risk-free rate C) stock AAA has a promised return, regardless of the market condition. D) stock AAA's return >return of the market portfolio.
Beta for stock AAA=0, so, A) stock AAA's return = the return of the market portfolio. B) stock AAA's required return = the risk-free rate C) stock AAA has a promised return, regardless of the market condition. D) stock AAA's return >return of the market portfolio.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Beta for stock AAA=0, so,
- A) stock AAA's return = the return of the market portfolio.
- B) stock AAA's required return = the risk-free rate
- C) stock AAA has a promised return, regardless of the market condition.
- D) stock AAA's return >return of the market portfolio.
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