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If a security has mean-zero cash flows... A. it is worth zero right now. B. it...

If a security has mean-zero cash flows...

A. it is worth zero right now.

B. it is a positive NPV investment.

C. it has the beta of the market portfolio.

D. it is identical to investing in a Treasury bill.

"All things have a natural price, and this price is connected to the cost." Such a statement would have been made by which of the following?

A. Thomas Aquinas

B. a Nominalist (like Roger Bacon)

C. a Franciscan intellectual

D. All of the above would have made an assertion like this.

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Answer #1

If a security has mean-zero cash flows...

A. it is worth zero right now.

B. it is a positive NPV investment.

C. it has the beta of the market portfolio. (ANSWER)

D. it is identical to investing in a Treasury bill.

Explanation: When a security has beta identical to market, it will rise and fall with the fluctuation of market. Thereby, it will have mean zero cash flow.

"All things have a natural price, and this price is connected to the cost." Such a statement would have been made by which of the following?

A. Thomas Aquinas

B. a Nominalist (like Roger Bacon)

C. a Franciscan intellectual

D. All of the above would have made an assertion like this. (ANSWER)

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