Daniel's Enterprises Has a Beta of 1

question 6

Multiple Choice

Daniel's Enterprises has a beta of 1.98 and a growth rate of 12 percent.The stock is currently selling for $12 a share.The overall stock market has an 11 percent rate of return and a risk premium of 8 percent.What is the expected rate of return on Daniel's Enterprises stock?

• A) 10.00 percent
• B) 15.85 percent
• C) 16.67 percent
• D) 18.84 percent
• E) 19.06 percent

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Definitions:

Nuclear Family Myth

The belief that the nuclear family of parents and children living apart from extended family is the traditional and best family structure, ignoring the diversity of family forms.

Custodial Parent

The parent who has been granted primary legal custody of a child by a court, bearing the majority of responsibility for the child's upbringing and welfare.

Noncustodial Parent

A parent who does not have legal custody of their child and typically has visitation rights, often responsible for providing financial support.

Remarried Couples

Partners who have been married previously to other people and have since married each other.