You Have Determined That a Stock Has a Required Rate

question 57

Multiple Choice

You have determined that a stock has a required rate of return of 18%.If the market risk premium is 10.50%,and the 91 day T-bill is yielding 2.50%,what is the stock's Beta?

• A) 1.00
• B) 2.00
• C) 1.48
• D) 0.95

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Definitions:

Plaque

A deposit of fatty and other substances that builds up in the inner lining of arteries, leading to atherosclerosis and potential blockage.

Waxed Floss

Dental floss coated with wax to facilitate easier sliding between teeth for the removal of plaque and food particles.

Head Lice

Parasitic insects that live on the human scalp and feed on blood, causing itching and discomfort; commonly spread by close personal contact.

Pediculosis Capitis

A common infestation of the scalp by head lice, leading to itching and discomfort.