The Expected Return on the Market for Next Period Is

question 29

Essay

The expected return on the market for next period is 11 percent. The risk-free rate is 4 percent, and Alpha Company has a beta of 1.1. The market risk premium is:
A) 7.7 percent.
B) 7 percent.
C) 11 percent.
D) 12.1 percent.

• A) 7.7 percent.
• B) 7 percent.
• C) 11 percent.
• D) 12.1 percent.

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Definitions:

Genetic Influences

The contribution of genetic factors to the development and expression of an individual's traits, behaviors, and physiology.

Unique Combination

The distinctive blend or mix of elements, qualities, or characteristics that come together to form a particular entity or outcome.

Personality

The combination of characteristics or qualities that form an individual's distinctive character and behavioral patterns.