Question 11
A stock with a beta of zero would be expected to have a rate of return equal to:
Risk-free rate.
Market rate of return.
Market risk premium
Zero.
A stock with a beta of zero would be expected to have a rate of return equal to:
Risk-free rate.
Market rate of return.
Market risk premium
Zero.
Correct answer
Risk-free rate.
Question 11 of 25 in the IIT Madras BS Financial Forensics (Financial Forensics) Quiz 2 paper sat on 6 Aug 2023, in the May 2023 term (IIT M DEGREE AN3 EXAM QPE3 06 Aug 2023). It carries 1 mark.