Exhibit 14 -Refer to Exhibit 14

question 123

Multiple Choice

Exhibit 14.11
Use the Information Below for the Following Problem(S)
$\begin{array}{lcc}\text { Investment } & \text { Beta } & \text { Analyst's Estimated Return } \\\hline \text { Stock } \mathrm{X} & 2.3 & 15.5 \% \\\text { Stock } \mathrm{Y} & 1.2 & 13.6 \% \\\text { Market Portfolio } & 1.0 & 11.5 \%\end{array}$

-Refer to Exhibit 14.11.What is the required rate of return for Stock Y based on the capital asset pricing model (CAPM) ?

• A) 11.5%
• B) 13.0%
• C) 13.6%
• D) 14.8%
• E) 15.5%

---

Definitions:

Functionalism

A psychological philosophy that considers mental life and behavior in terms of active adaptation to the person's environment.

Mechanical Repetition

The act of repeating an action or a set of words mindlessly or without understanding, often for learning or practice.

Objective Sensations

Perceptions that correspond to external stimuli and are not influenced by personal feelings or interpretations.

Positive Reinforcement

A process in behavioral psychology where the introduction of a positive stimulus following a desired behavior increases the likelihood of that behavior being repeated.