A Stock Has a Beta of 1

question 85

Multiple Choice

A stock has a beta of 1.32 and an expected return of 12.8 percent.The risk-free rate is 3.6 percent.What is the slope of the security market line?

• A)6.49 percent
• B)7.28 percent
• C)6.97 percent
• D)9.03 percent
• E)7.99 percent

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Definitions:

Area Chart

A type of graph that represents quantified values as areas under a line, often used to track changes over time.

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The process of building or assembling infrastructure, buildings, or other physical structures from a design, involving various trades and materials.

Graphing Data

Graphing data involves displaying numerical information in a visual format, such as charts or graphs, to facilitate easier understanding, analysis, and comparison.

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