- CFA Exams
- CFA Level I Exam
- Study Session 18. Portfolio Management (1)
- Reading 53. Portfolio Risk and Return: Part II
- Subject 3. The Capital Asset Pricing Model
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. |