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:

Heredity

The passing of traits from parents to their offspring through genes, influencing various characteristics and predispositions.

Constitutional Growth Delay

A pattern where children have a slower rate of growth and development, but eventually catch up to their peers in height and sexual maturation.

Human Growth Hormones

Peptide hormones secreted by the pituitary gland that stimulate growth, cell reproduction, and cell regeneration in humans and other animals.

Self-Esteem

An individual's overall subjective emotional evaluation of their own worth or value.