A Stock Has an Expected Return of 14

question 23

Multiple Choice

A stock has an expected return of 14.5 percent, the risk-free rate is 4 percent and the return on the market is 11 percent. What is this stock's beta?

• A) 1.5
• B) 3.0
• C) 1.05
• D) 0.94

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Definitions:

Evaluation

The systematic assessment of the value, performance, or qualities of someone or something, typically for purposes of making decisions or improving effectiveness.

Line Managers

Managers who are directly responsible for overseeing the performance and operations of a specific department or area within an organization.

Performance Management Strategically

Strategically managing performance involves aligning individual employee goals and objectives with the strategic objectives of the organization to enhance productivity and contribute to the company's success.

HR Managers

Professionals responsible for overseeing the human resources department, focusing on policies, strategies, and employee welfare within an organization.