A stock with a beta of zero would be expected to have a rate of return equal to:______.
a. the market risk premium.
b. the risk-free rate.
c. the market rate of return.
d. zero.
e. the prime rate.

Respuesta :

A stock with a beta of zero would be expected to have a rate of return equal to the risk-free rate.

Stocks consist of shares in which the ownership of a company or business has been divided. A single share represents a company's partial ownership over the total number of shares.

A stock is a type of security that represents a holder's proportional interest in the issuing company and is sold primarily on a stock exchange. Corporations issue shares to raise funds to operate their businesses. There are two main types of shares: common shares and preferred shares.

shares represent ownership of the company. An example stock is 100 shares of Disney Corporation.

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