The Expected Return on Justus, Inc

question 96

Multiple Choice

The expected return on Justus, Inc. stock is 15.63% while the expected return on the market is 12.4%. The beta of Justus's stock is 1.48. What is the risk-free rate of return?

• A) 3.97%
• B) 4.20%
• C) 4.68%
• D) 5.21%
• E) 5.67%

---

Definitions:

Mining Industry

Refers to the sector involved in the extraction of minerals and other geological materials from the earth.

Consumer Culture

A societal framework where buying and consuming goods and services is a primary pursuit and indicator of social status or personal happiness.

Increasing Debt

This refers to a situation where an entity, be it an individual, company, or government, experiences a continuous rise in the amount of money owed to others.