Question
What will be the risk premium on a stock whose returns have a correlation of +1 with the returns of the market portfolio? Multiple Choice
What will be the risk premium on a stock whose returns have a correlation of +1 with the returns of the market portfolio?
Multiple Choice
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Zero
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The risk-free rate of return
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One
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The Market Risk Premium
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The stocks beta
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Personal Financial Planning
Authors: Lawrence J. Gitman, Michael D. Joehnk
11th Edition
0324422865, 978-0324422863
