The Market Return Is 11% and the Risk Free Rate

question 41

Multiple Choice

The market return is 11% and the risk free rate is 4%. Mammoth Inc. has a market beta of 1.2, a SMB beta of −.78, and a HML beta of −1.2. If the risk premium on HML and SMB are both 3%, using the Fama-French Three Factor Model, what is the expected Return on Mammoth Inc. stock?

• A) 4.66%
• B) 6.46%
• C) 12.3%
• D) 15.3%

Understand the process and significance of creolization.

Identify and describe the anatomical structures of the ear.

Recognize the factors that influence birdsong.

Differentiate between the roles of the outer and inner hair cells.

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Definitions:

Duty of Care

A legal obligation which requires a person to adhere to a standard of reasonable care while performing any acts that could foreseeably harm others.

Foreseen

Anticipated or predicted as likely to happen in the future.

Rattlesnake

A venomous snake known for the distinctive rattle at the end of its tail, which it shakes as a warning signal to potential predators or threats.

Liability

Legal responsibility for one's actions or omissions, which may result in damages or legal penalties.