The Stock of Uncle Fred's Has a Beta a 1

question 206

Multiple Choice

The stock of Uncle Fred's has a beta a 1.23 and an expected return of 13.42%. The risk-free rate of return is 3.8%. What is the expected return on the market?

• A) 9.87%
• B) 10.04%
• C) 10.67%
• D) 11.23%
• E) 11.62%

---

Definitions:

Social Security Payments

Money that is paid to individuals by the government as part of a social welfare program, typically in retirement or for disability.

Poverty

A condition where an individual or community lacks financial resources and essentials for a minimum standard of living.

Relative Concept

An idea or measurement that is understood in relation or comparison to something else, not absolute.

Absolute Concept

A theory or principle that is considered universally valid or applicable, without any conditions or exceptions.