A Stock Has an Expected Return of 14

question 60

Multiple Choice

A stock has an expected return of 14.3 percent, the risk-free rate is 3.9 percent, and the market risk premium is 7.8 percent.What must the beta of this stock be?

• A)1.67
• B).94
• C)1.08
• D)1.21
• E)1.33

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Definitions:

Authoritative Style

A parenting style characterized by high demands and high responsiveness, encouraging autonomy while setting clear boundaries.

Parenting

The process of promoting and supporting the physical, emotional, social, and intellectual development of a child from infancy to adulthood.

Authoritative Parents

A parenting style characterized by high responsiveness and high demands, where parents set clear standards and are assertive without being intrusive or restrictive.

Authoritarian Parents

A parenting style characterized by high demands and low responsiveness, where parents impose strict rules and expect obedience without question.