The Common Stock of GO Limited Has a Beta of 1.23

question 28

Multiple Choice

The common stock of GO Limited has a beta of 1.23 and an expected return of 12.84%. The risk-free rate of return is 4.2%. What is the expected return on the market?

• A) 7.02%
• B) 8.64%
• C) 10.63%
• D) 11.22%
• E) 17.04%

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Definitions:

Total Expenses

The sum of all expenses incurred by a business during a specified period, including cost of goods sold, operating expenses, and other charges.

Spending Variance

The difference between the actual amount of money spent and the budgeted amount in a given period.

Occupancy Costs

Expenses related to occupying a space, including rent, utilities, and other facility-related costs.

Spending Variance

The difference between the actual spending and the budgeted or planned spending in a given period.