Cooley Company's Stock Has a Beta of 1

question 117

Multiple Choice

Cooley Company's stock has a beta of 1.40,the risk-free rate is 4.25%,and the market risk premium is 5.50%.What is the firm's required rate of return?

• A)11.36%
• B)11.65%
• C)11.95%
• D)12.25%
• E)12.55%

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Definitions:

Positive Charge

An electrical condition that occurs when an atom loses electrons, resulting in a surplus of protons, giving it a net positive electric charge.

Glial Cells

Non-neuronal cells in the central nervous system that support, nourish, and protect neurons.

Cerebral Spinal Fluid

Clear, colorless body fluid found in the brain and spinal cord that acts as a cushion for the brain's cortex, providing basic mechanical and immunological protection to the brain inside the skull.

Blood-Brain Barrier

A filtering mechanism of the capillaries that carry blood to the brain and spinal cord tissue, blocking the passage of certain substances.