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:

Eye Movements

The voluntary or involuntary movement of the eyes, which can be important in visual tracking, reading, and expressing emotions.

Saccades

Rapid, ballistic movements of the eyes that abruptly change the point of fixation, allowing the visual system to quickly move from one object of interest to another.

Retinal Fixations

Moments when the eye remains stationary, focusing on a single point in the field of vision.

Dilations

The process of expansion or enlargement in part or area, often used in medical contexts such as the dilation of pupils or blood vessels.