The Historical Returns for the Past Three Years for Stock

question 54

Multiple Choice

The historical returns for the past three years for Stock B and the stock market portfolio are Stock B: 24 percent, 0 percent, 24 percent; market portfolio: 10 percent, 12 percent, 20 percent. The expected market return is 12 percent. Calculate the required rate of return (cost of equity) for Stock B using the CAPM. (The risk-free rate of return = 4%.)

• A)8.6 percent
• B)12.6 percent
• C)10.9 percent
• D)16.0 percent

Understand the misconceptions about creativity and intelligence.

Learn the stages of the brainstorming process and group creativity methods.

Recognize the importance of intrinsic motivation and optimal experiences in nurturing creativity.

Understand the effects of creativity on business and organizational outcomes.

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Definitions:

Traits

Enduring characteristics or patterns of thoughts, feelings, and behaviors that are relatively stable over time and across situations, which differentiate one person from another.

Environment

The surrounding conditions, influences, or forces which affect the development, action, or survival of an individual or organism.

Gene-environment Interactions

The complex interplay between genetic predispositions and environmental factors that influence individual characteristics and behaviors.

Trait Expression

The manner in which an individual's characteristics or qualities are displayed or manifested in their behavior.