1 pointA stock with a beta of zero would be expected to have a rate of return equal to:
Question
Solution 1
A stock with a beta of zero would be expected to have a rate of return equal to the risk-free rate.
Here's why:
- Beta is a measure of a stock's volatility in relation to the market. A beta of 1.0 indicates that the stock's price will move with the market. A beta less than 1.0 indicates the stoc Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
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