37. Suppose the risk-free rate is 2% and the market risk premium is 7%. What is the beta of the risk-free asset?
a. 5%
b. 1
c. 0
d. Not enough information to answer

40. Suppose the market risk premium is 7% and the risk-free rate is 1%. What would be the beta of a passively managed index fund that holds the market portfolio?
a. 0
b. 1
c. −1
d. 0.5