Suppose the Beta of Microsoft Is 1

question 84

Multiple Choice

Suppose the beta of Microsoft is 1.13, the risk-free rate is 3 percent, and the market risk premium is 8 percent. Calculate the expected return for Microsoft.

• A)12.04 percent
• B)15.66 percent
• C)13.94 percent
• D)8.65 percent

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Definitions:

Mannerist

A style of European art that emerged in the later years of the Italian High Renaissance around the 1520s, characterized by elongated forms, exaggerated poses, and unnatural lighting.

High Renaissance

The High Renaissance is a term used to describe the pinnacle of the Renaissance period, characterized by major artistic, architectural, and literary advancements, primarily in Italy between 1490 and 1527.

Venetian Church

Refers to churches in Venice, Italy, notable for their distinctive architectural styles, rich history, and artistic significance, such as St. Mark's Basilica.

Triumph of Venice

A famous painting or motif celebrating the power and glory of Venice, often depicting Venice's victories or prosperity.