Given Birdchip's Beta of 1

question 42

Multiple Choice

Given Birdchip's beta of 1.25 and a risk free rate of 6 percent,what is the expected rate of return assuming a 12 percent market return?

• A) 1%
• B) 10%
• C) 11%
• D) 12%
• E) 31%

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Definitions:

Zunis

Pertains to the Zuni people, a Native American tribe primarily located in New Mexico, known for their cultural and ceremonial practices.

Tetons

A mountain range in the Rocky Mountains in North America, known for its scenic beauty and outdoor recreation opportunities.

Disintegrating

The process of breaking down or decaying, often used metaphorically to describe the breakdown of social structures or relationships.

Less Respectful

Showing a decreased level of regard or reverence towards someone or something.