Use the Following Information to Answer the Question(s)below

question 67

Multiple Choice

Use the following information to answer the question(s) below.
Galt Industries has no debt,total equity capitalization of $600 million,and an equity beta of 1.2.Included in Galt's assets is $90 million in cash and risk-free securities.Assume the risk-free rate is 4% and the market risk premium is 6%.
-Galt's asset beta (i.e.the beta of its operating assets) is closest to:

• A)1.1.
• B)1.2.
• C)1.3.
• D)1.4.

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Definitions:

Persuading

The act of convincing someone to do or believe something through reasoning or the use of emotional appeal.

Persuasive Communicator

An individual who possesses the skill to influence others' attitudes, beliefs, or behaviors through effective communication.

Expertise

Expertise is the high level of skill, knowledge, or ability in a particular field or activity, gained through experience or education.

Halo Effect

The tendency to perceive someone positively across various attributes based on one favorable trait.