A Stock Has an Expected Return of 9

question 89

Multiple Choice

A stock has an expected return of 9.5 percent, the risk-free rate is 2 percent and the return on the market is 8 percent. What is this stock's beta?

• A) 1.50
• B) 1.25
• C) 1.19
• D) 0.94

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Definitions:

Counteracting Globalization

Efforts aimed at resisting or managing the effects of globalization in order to preserve local cultures, economies, and environments.

Global Homogeneity

The process or state where cultures around the world become increasingly similar to one another, often due to globalization and the spread of Western culture.

Global Diversity

Refers to the variety and differences among people and cultures around the world.

Semiperipheral Country

A nation that is intermediate between the core and periphery countries in the global economy, exhibiting traits of both industrialization and dependency.