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

question 59

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 Taggart Transcontinental is closest to:

• A)0.75.
• B)0.80.
• C)1.00.
• D)1.10.

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Definitions:

Variable Selling Expenses

Sales-related costs that vary directly with the volume of sales, such as commissions and shipping charges.

Contribution Approach

An income statement format that organizes costs by their behavior. Costs are separated into variable and fixed categories rather than being separated according to organizational functions.

Variable Administrative Expenses

Costs that fluctuate in relation to a company's activity levels, such as clerical support and utilities.

Maintenance Hours

The total number of hours dedicated to maintaining and repairing machinery, equipment, or property within a certain period.