The Returns on the Market, the Returns on United Fund

question 10

Multiple Choice

The returns on the market, the returns on United Fund (UF) , the risk-free rate, and the required return on the United Fund are shown below. Assuming the market is in equilibrium and that beta can be estimated with historical data, what is the required return on the market, rM?rRF: 7.00%; rUnited: 15.00%

• A) 10.57%
• B) 11.13%
• C) 11.72%
• D) 12.33%
• E) 12.95%

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Definitions:

Abnormal Behavior

Actions or behaviors that are considered deviant from the societal or cultural norms, and may indicate a psychological disorder or mental illness.

Behaviorists

Psychologists who focus on observable behaviors, ignoring the mental processes behind them.

Disordered Behavior

Actions or patterns of behavior that deviate significantly from the norm, often indicating underlying mental or emotional issues.

Psychological Disorder

A condition characterized by abnormal thoughts, feelings, or behaviors that cause distress, impairment in functioning, or both.