Multiple Choice
Assume that the CAPM holds.If a security has a beta of 1, its expected return is:
A) the risk-free rate
B) 1.0 %
C) the return on the market portfolio
D) cannot be determined with the above information
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q105: Stock A has a standard deviation of
Q106: Suppose the beta of a four-asset portfolio
Q107: What is the standard deviation of
Q108: Which of the following is a FALSE
Q109: What is the standard deviation of an
Q111: A portfolio consists of two securities: a
Q112: Stock A has a standard deviation of
Q113: Stock Y has a standard deviation of
Q114: What is the expected value from an
Q115: Min has $5,000 to invest.The expected return