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Calculate the Expected Return for a Industries Which Has a Beta

question 15

Multiple Choice

Calculate the expected return for A Industries which has a beta of 1.75 when the risk free rate is 0.03 and you expect the market return to be 0.11.


Definitions:

Substitution Effect

The change in consumption patterns due to a change in relative prices, holding the consumer's level of utility constant.

Price

The fiscal amount needed for the acquisition of a product or service.

Delphiniums

A genus of flowering plants known for their tall spikes of colorful flowers, commonly found in gardens.

Perfect Substitutes

Goods or services that can be used in exactly the same way and to the same extent, where one can completely replace the other in consumption.

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