Stock X and the "Market" Have Had the Following Rates

question 27

Multiple Choice

Stock X and the "market" have had the following rates of returns over the past four years. 60% of your portfolio is invested in Stock X and the remaining 40% is invested in Stock Y. The risk-free rate is 6% and the market risk premium is also 6%. You estimate that 14% is the required rate of return on your portfolio. What is the beta of Stock Y?

• A) 1.72
• B) 1.91
• C) 2.10
• D) 2.31
• E) 2.54

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Definitions:

M2M

Machine-to-Machine communication, referring to direct communication between devices using any communications channel, including wired and wireless.

Horizontal Flow

The movement of information, resources, or processes across an organization or system at the same level or hierarchy, promoting collaboration and efficiency.

Virtual Brand Community

Virtual Brand Community is an online group of individuals with shared interests in a particular brand, where members interact and exchange information, reinforcing brand loyalty and engagement.

Consumer-Generated

Content or data created by customers or end-users, typically referring to reviews, feedback, or online discussions about products or services.