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    Exam 11: Risk and Return: the Capital Asset Pricing Model
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    A Stock with a Beta of Zero Would Be Expected
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A Stock with a Beta of Zero Would Be Expected

Question 1

Question 1

Multiple Choice

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.

Correct Answer:

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