Which is a risk-free asset

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Reference no: EM132993471

Problem 1: Which of the following is a risk-free asset?

a) a 3%, 5-year bond issued by Apple (rated AAA)

b) a 52-week T-Bill

c) an Iranian 52-week T-Bill

d) a 2%, 10-year T-Note

Problem 2: Asset A has an expected return of 14%. The expected market return is 10% and the risk-free rate is 2%. What is Asset A's beta?

a) 0.75

b) 0.5

c) 1.50

d) 1.25

Problem 3: If a stock lies below the SML, it is

a) overvalued.

b) fairly valued.

c) undervalued.

Reference no: EM132993471

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