Assume That the Risk-Free Rate Is 5

question 63

Multiple Choice

Assume that the risk-free rate is 5%.Which of the following statements is CORRECT?

• A) If a stock has a negative beta,its required return under the CAPM would be less than 5%.
• B) If a stock's beta doubled,its required return under the CAPM would also double.
• C) If a stock's beta doubled,its required return under the CAPM would more than double.
• D) If a stock's beta were 1.0,its required return under the CAPM would be 5%.
• E) If a stock's beta were less than 1.0,its required return under the CAPM would be less than 5%.

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Definitions:

Ending Work in Process Inventory

indicates the value of products that are partially completed at the end of an accounting period.

Cost Reconciliation Report

A report that bridges the gap between the opening and closing balances of a job or project, detailing all the costs incurred.

Ending Work in Process Inventory

The total value of partially completed goods that are still undergoing production at the end of an accounting period.

Job-order Costing

An accounting method used to track the expenses of specific jobs and calculate the cost of production for each job.