Calculate the Expected Return for D Industries Which Has a Beta

question 59

Multiple Choice

Calculate the expected return for D Industries which has a beta of 1.0 when the risk free rate is 0.03 and you expect the market return to be 0.13.

• A) 8.6%
• B) 9.2%
• C) 11.0%
• D) 12.0%
• E) 13.0%

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Definitions:

Public Sector Employment

Jobs provided by government entities at the federal, state, or local levels.

Inner-City Joblessness

High rates of unemployment among residents of densely populated, urban neighborhoods, typically resulting from a combination of economic, social, and educational disadvantages.

Microfinance

A type of banking service provided to unemployed or low-income individuals or groups who have no other access to financial services.

Financial Services

Economic services provided by the finance industry, including banks, insurance companies, investment funds, and more.