Linke Motors Has a Beta of 1

question 94

Multiple Choice

Linke Motors has a beta of 1.30,the T-bill rate is 3.00%,and the T-bond rate is 6.5%.The annual return on the stock market during the past 3 years was 15.00%,but investors expect the annual future stock market return to be 13.00%.Based on the SML,what is the firm's required return?

• A)13.51%
• B)13.86%
• C)14.21%
• D)14.58%
• E)14.95%

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Definitions:

Chronic Pain

Persistent pain that lasts for more than three months, often despite medication or treatment.

Behavior Modification Programs

Structured interventions designed to alter an individual's behaviors and attitudes, often using principles of operant conditioning.

Pain Behaviors

Observable manifestations of pain, such as grimacing, moaning, or limping, used to communicate or signal the presence of pain to others.

Cognitive Behavioral Therapy

A type of psychotherapy that helps patients understand the thoughts and feelings that influence behaviors.