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

question 76

Multiple Choice

Use the following information to answer the question(s) below. The volatility of the market portfolio is 10%,the expected return on the market is 12%,and the risk-free rate of interest is 4%.
-The beta for the market is closest to:

• A)0.80.
• B)1.00.
• C)1.10.
• D)1.25.

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Definitions:

Beauty Premium

The phenomenon where individuals perceived as more attractive than average enjoy advantages in aspects such as employment, earning potential, and social recognition.

Marginal Product

The additional output that is produced by utilizing one more unit of a particular input, holding all other inputs constant.

Signaling Theory

A theoretical framework explaining how individuals and businesses convey information about themselves to differentiate from others, often in contexts like job markets or product quality.

Human-Capital View

A perspective that treats individuals' skills and knowledge as valuable assets that can improve productivity and contribute to economic growth.