The Beta of a Firm in Switzerland Is 1

question 7

Multiple Choice

The beta of a firm in Switzerland is 1.25. The risk-free rate is 4% and market risk premium is 8.4%. Calculate the required rate of return for this firm.

• A) 10.5%
• B) 8.4%
• C) 14.5%
• D) None of the above

---

Definitions:

Snapchat

A social media application that allows users to share ephemeral photos and videos, which disappear after being viewed.

Nonverbal Communication

The process of conveying a message without using words, through gestures, facial expressions, and body language.

Impaired Social Skills

Difficulty in performing or understanding social interactions and cues appropriately.

Express Feelings

The act of verbalizing or demonstrating emotions or sentiments to others, often for emotional release or communication.