What Is the Required Rate of Return on a Stock

question 78

Multiple Choice

What is the required rate of return on a stock if the risk-free rate is 7%, the return on the market portfolio is 15%, and the beta is 1.5?

• A) 12 %
• B) 19%
• C) 22.5%
• D) 29.5%
• E) 33%

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Definitions:

Auditory Hallucination

An experience involving hearing sounds, usually voices, that are not present in external reality.

Olfactory Hallucination

A form of hallucination involving the perception of smells that are not present in the environment.

Avolition

A reduction in the motivation to initiate and perform self-directed purposeful activities, often observed in various mental health disorders.

Working Memory

A cognitive system with a limited capacity that is responsible for temporarily holding information available for processing.