Mulherin's Stock Has a Beta of 1

question 68

Multiple Choice

Mulherin's stock has a beta of 1.23,its required return is 11.75%,and the risk-free rate is 4.30%.What is the required rate of return on the market? (Hint: First find the market risk premium.)

• A)10.36%
• B)10.62%
• C)10.88%
• D)11.15%
• E)11.43%

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Definitions:

Nataraja

A depiction of the Hindu god Shiva as the cosmic dancer who performs his divine dance to destroy a weary universe and make preparations for the god Brahma to start the process of creation.

Harihara

A deity in Hinduism that combines aspects of both Vishnu and Shiva, symbolizing their unity and the encompassing nature of the divine.

Ananda

A key disciple of the Buddha, known for his memory and recollection of the Buddha's teachings.

Suryavarman II

An 11th to 12th-century Khmer king of Cambodia, best known for commissioning the construction of the Angkor Wat temple complex.