Calculate the Expected Return for B Services Which Has a Beta

question 100

Multiple Choice

Calculate the expected return for B Services which has a beta of 0.83 when the risk free rate is 0.05 and you expect the market return to be 0.12.

• A) 14.96%
• B) 16.15%
• C) 10.81%
• D) 17.00%
• E) 15.25%

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Definitions:

Diffuse Energy

Energy that is spread out rather than concentrated, often referring to solar energy received by the Earth's surface which is dispersed over a wide area.

Renewable Energy

Energy from sources that are naturally replenishing but flow-limited, such as sunlight, wind, water currents, geothermal heat, and bioenergy.

Stored

Kept or accumulated for future use, referring to anything that can be retained or conserved for a period of time.