The Historical Returns Data for the Past Four Years for Stock

question 22

Multiple Choice

The historical returns data for the past four years for Stock C and the stock market portfolio returns are: Stock C: 10%, 30%, 20%, 20%; Market Portfolio: 5%, 15%, 25%, 15%. If the risk-free rate of return is 5%, calculate the required rate of return on the Stock C using CAPM.

• A) 5%
• B) 10%
• C) 15%
• D) none of the above

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Definitions:

Sexual Fantasies

refer to imagined sexual scenarios that an individual finds arousing or exciting, which can vary widely in content and intensity among different people.

Freud

Sigmund Freud, originating from Austria and known for creating the psychoanalytic method, treated mental illnesses by facilitating discussions between a psychoanalyst and the patient.

Libido

A term used in psychoanalytic theory to denote the energy of the sexual drive as a component of the life instinct.

Infant

A very young child or baby, typically under the age of one year, at the earliest stages of development.