If the market rate of return is 10% and the beta on a particular stock is .78, the return on the stock will be:
A)greater than 10%.
B)greater or less than 10%, depending on the risk-free rate of return.
C)less than 10%.
D)dependent on some other factor.

Question

Quizplus · Accepted Answer

If the market rate of return is 10% and the beta on a particular stock is .78, the return on the stock will be less than 10%.

If the Market Rate of Return Is 10% and the Beta