What Is the Expected Return on Asset a If It

question 356

Multiple Choice

What is the expected return on asset A if it has a beta of 0.3, the expected market return is 14%, and the risk-free rate is 5%?

• A) 6.0%
• B) 9.2%
• C) 7.2%
• D) 7.7%
• E) 4.5%

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Definitions:

Categorical Propositions

Statements that assert or deny that all, some, or none of a particular class of objects belong to another class of objects.

Universal

Describes something that applies to all instances or a concept that is globally accepted or recognized.

Categorical Syllogism

A logical argument that makes use of three categorical statements, including two premises and a conclusion, to demonstrate a relationship between sets or categories.

Categorical Syllogism

A form of deductive reasoning consisting of three parts: a major premise, a minor premise, and a conclusion, each of which is a categorical proposition.