A Company Has a Beta of 3

question 18

Multiple Choice

A company has a beta of 3.25. If the market return is expected to be 14 percent and the risk-free rate is 5.5 percent, what is the company's required return?

• A) 22.750 percent
• B) 33.125 percent
• C) 45.500 percent
• D) 51.000 percent

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Definitions:

Lateral Hypothalamus

A region of the hypothalamus involved in regulating hunger and thirst.

Abraham Maslow's

Abraham Maslow's work in psychology emphasized the importance of focusing on the positive qualities in people, as opposed to treating them as a 'bag of symptoms'.

Hierarchy of Needs

A motivational theory in psychology proposed by Abraham Maslow, suggesting that people are motivated to fulfill basic needs before moving on to other, more advanced needs, culminating in self-actualization.

Physiological

Relating to the functions and activities of living organisms and their parts, including all physical and chemical processes.