The Expected Return for a Stock,calculated Using the CAPM,is 25

question 16

Multiple Choice

The expected return for a stock,calculated using the CAPM,is 25%.The risk free rate is 7.5% and the beta of the stock is 0.80.Calculate the implied return on the market.

• A) 7.50%
• B) 13.91%
• C) 17.50%
• D) 21.88%
• E) 14.38%

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Definitions:

Negatively Worded

Refers to items or questions in surveys or assessments that are phrased in a manner that implies the opposite of what is being asked to prevent bias.

Negatively Worded

Refers to the use of negative phrasing in questions or statements, which can sometimes lead to confusion or misinterpretation in surveys or tests.

Yea-Saying

A response bias in surveys or questionnaires where participants tend to agree with statements regardless of their content, often to be agreeable or due to misunderstanding.

Nay-Saying

Nay-Saying involves consistently responding negatively or skeptically, often in the context of surveys or questionnaires.