What is the expected return of a zero-beta security?

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Question:

What is the expected return of a zero-beta security?

A.

The market rate of return.

B.

Zero rate of return.

C.

A negative rate of return.

D.

The risk-free rate.

Answer» d. The risk-free rate.

Note: The above multiple-choice question is for all general and Competitive Exams in India.