The Common Stock of Cross Country Homes Has an Expected

question 271

Multiple Choice

The common stock of Cross Country Homes has an expected return of 15.18%. The return on the market is 11.6% and the risk-free rate of return is 4.3%. What is the beta of Cross Country Homes stock?

• A) 1.37
• B) 1.42
• C) 1.49
• D) 1.51
• E) 1.56

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Definitions:

Natural Mimicry

The resemblance of one organism to another or to an inanimate object, offering it an advantage such as protection from predators.

Social Contagion

The spread of ideas, attitudes, or behavior patterns through a community or society via imitation or conformity.

Empathic Mimicking

The action of involuntarily mirroring the emotions or expressions of others, a mechanism that fosters empathy and social connection.

Deindividuation

A psychological state in which an individual adopts a group identity, losing personal responsibility and inhibitions, often leading to impulsive and deviant behavior.