CFA Practice Question

There are 294 practice questions for this study session.

CFA Practice Question

What is the expected return of a zero-beta security?
A. Market rate of return
B. Zero rate of return
C. Risk-free rate of return

User Contributed Comments 5

User Comment
ABANSAL I think it should be A
dimanyc A is beta of 1
Bibhu Beta =0 , Risk free return
Beta = 1, Market return
Beta >1, Security more volatile than market
Beta <1, Security less volatile than market
ml42085 =rfr+b(mkt premium)

if b=0, then that zeros out mkt premium... i guess that makes sense
reganbaha ml42085 is spot on.
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