CJ Co Stock Has a Beta of 0

question 70

Multiple Choice

CJ Co. stock has a beta of 0.9, the current risk-free rate is 5.6, and the expected return on the market is 13 percent. What is CJ Co's cost of equity?

• A) 12.26 percent
• B) 17.30 percent
• C) 19.50 percent
• D) 22.34 percent

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Definitions:

Racism

The systematic subordination of members of targeted racial groups who have relatively little social power by members of the agent racial group who have relatively more social power.

Categorical Thinking

The cognitive process of organizing and classifying information into categories for easier understanding and communication.

Perception of Threat

The individual or collective interpretation of an event, situation, or entity as posing a potential danger or harm.

Out Groups

Social groups to which an individual does not belong or identify, often perceived as different or outside the norm.