The Required Return on a Security Is 10%,the Risk-Free Rate

question 46

Multiple Choice

The required return on a security is 10%,the risk-free rate is 5%,and the return on the market is 14%.What is the beta of the firm?

• A) 0.14
• B) 0.55
• C) 0.83
• D) 1.00
• E) 1.40

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Definitions:

Demilitarized Zone

A region or area that has been agreed upon by opposing military forces not to conduct any military activities or maintain military installations.

Ayn Rand

was a Russian-American writer and philosopher known for developing a philosophical system called Objectivism and for her novels "The Fountainhead" and "Atlas Shrugged."

Josef Stalin

Soviet political leader who governed the Soviet Union from the mid-1920s until his death in 1953, known for his totalitarian rule.

Harry S Truman

The 33rd president of the United States, known for his leadership during the final stages of World War II and the early years of the Cold War.