Calculate the Expected Return for E Services Which Has a Beta

question 17

Multiple Choice

Calculate the expected return for E Services which has a beta of 1.5 when the risk free rate is 0.05 and you expect the market return to be 0.11.

• A) 10.6%
• B) 12.1%
• C) 13.6%
• D) 14.0%
• E) 16.2%

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Definitions:

Synthetic Rubber

A man-made elastomer designed to mimic natural rubber, noted for its elasticity and produced through polymerization processes.

Saran

A synthetic polymer known for its barrier properties, particularly for preventing the passage of water vapor; used in food wrap and various coatings.

Alternating Copolymer

A polymer made from two different monomers arranged in an alternating sequence throughout the chain.

Nobel Prize

Prestigious international award given annually in several categories including physics, chemistry, medicine, literature, and peace.