A Company Has a Beta of 0

question 2

Multiple Choice

A company has a beta of 0.25. If the market return is expected to be 8 percent and the risk-free rate is 2 percent, what is the company's required return?

• A) 1.50 percent
• B) 3.50 percent
• C) 4.00 percent
• D) 13.50 percent

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Definitions:

Intensive Discussion

Entails a concentrated and thorough dialogue or debate on a specific subject to reach a deeper understanding or resolution.

Focus Group

A research method where a small, diverse group of people are gathered to discuss and provide feedback on a particular topic, product, or service, offering insights into consumer perceptions and attitudes.

Topic

A subject or theme that is discussed, written about, or studied.

Predetermined Set

A predefined collection of items, options, or criteria established before a process or decision-making.