Risk Metrics Company Is Expected to Pay a Dividend of $3.50

question 36

Multiple Choice

Risk Metrics Company is expected to pay a dividend of $3.50 in the coming year.Dividends are expected to grow at a rate of 10% per year.The risk-free rate of return is 5%, and the expected return on the market portfolio is 13%.The stock is trading in the market today at a price of $90.00. What is the approximate beta of Risk Metrics's stock?

• A)0.8
• B)1.0
• C)1.1
• D)1.4

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Definitions:

Turned "Off"

A phrase indicating something is inactive, not in operation, or not engaged.

Dim Illumination

Refers to low levels of light in an environment, impacting visibility and sometimes mood or behavior.

Rods

Photoreceptor cells in the retina of the eye that are highly sensitive to light and enable vision in low-light conditions.

Cones

Photoreceptor cells in the retina of the eye that function best in bright light and are responsible for color vision and sharpness of vision.