The Beta for the DAK Corporation Is 1

question 16

Multiple Choice

The beta for the DAK Corporation is 1.25.If the yield on 30 year T-bonds is 5.65%,and the long term average return on the S&P 500 is 11%.Calculate the required rate of return for DAK Corporation.

• A) 12.34%
• B) 7.06%
• C) 13.74%
• D) 5.35%
• E) 5.65%

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Definitions:

Genetic Diversity

The total number of genetic characteristics in the genetic makeup of a species, contributing to its ability to adapt and survive changes.

Asexual Reproduction

A mode of reproduction that does not involve the fusion of gametes, resulting in offspring genetically identical to the parent.

Diploid Cells

Cells that have two complete sets of chromosomes, one from each parent, characteristic of most organisms’ body cells.

Inguinal Canal

A passage in the anterior abdominal wall that in males conveys the spermatic cord and in females the round ligament of the uterus.