Zoro Corp Has a Beta of 2

question 55

Multiple Choice

Zoro Corp. has a beta of 2.0. The risk-free rate of interest is 5 percent, and the return on the stock market overall is expected to be 13 percent. What is the required rate of return on Zoro stock?

• A) 21 percent
• B) 41 percent
• C) 16 percent
• D) 13 percent
• E) None of these are correct.
• ​

---

Definitions:

Death Penalty

A governmental sanction where a person is put to death by the state as punishment for a crime.

Deterrent

A factor, condition, or threat that discourages individuals from engaging in particular behaviors, often used in the context of crime prevention.

Sociologists

are social scientists who study human societies, including their structures, functions, cultural norms, and development.

Psychiatrists

Medical doctors specialized in the diagnosis, treatment, and prevention of mental illnesses and emotional disorders.