Consider the Single-Index Model $\beta$ Of the Stock Is
A)0

question 26

Multiple Choice

Consider the single-index model.The alpha of a stock is 0%.The return on the market index is 16%.The risk-free rate of return is 5%.The stock earns a return that exceeds the risk-free rate by 11%, and there are no firm-specific events affecting the stock performance.The $\beta$ of the stock is

• A)0.67.
• B)0.75.
• C)1.0.
• D)1.33.

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Definitions:

Currency Fluctuations

Variations in the exchange rate of one currency against another, influencing international trade and economic conditions.

Marketing Opportunities

Situations where new products, services, or practices can potentially meet unfulfilled customer needs or market demand.

Appreciating

The process of recognizing the full worth of something or increasing in value over time.

Purchasing Capability

A measure of the ability of an individual or organization to buy goods or services, based on financial resources.