The beta of a government bond is
The beta of a government bond is generally
a) equal to one because a government bond has average market risk.
b) equal to the risk-free rate of interest.
c) 0.5 because government bonds yield about half as much as stocks.
d) assumed to be zero.
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lower expected inflation will lead to aa higher risk-free rate due to advantage of higher purchasing powerb higher risk
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the beta of a government bond is generallya equal to one because a government bond has average market riskb equal to
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