Bertin Bicycles Has a Beta of 0

question 103

Multiple Choice

Bertin Bicycles has a beta of 0.88 and an expected dividend growth rate of 4.00% per year.The T-bill rate is 4.00%,and the T-bond rate is 5.25%.The annual return on the stock market during the past 4 years was 10.25%.Investors expect the average annual future return on the market to be 11.50%.Using the SML,what is Bertin's required rate of return?

• A)10.48%
• B)10.75%
• C)11.02%
• D)11.29%

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Definitions:

Masturbation

The sexual stimulation of one's own genitals for sexual arousal or pleasure, often to the point of orgasm.

Sexual Activity

Behaviors that include a broad range of actions intended to result in sexual pleasure or reproduction.

Self-Esteem

An individual’s subjective evaluation of their own worth or value.

Peer Pressure

The influence exerted by a peer group in encouraging a person to change their attitudes, values, or behaviors in order to conform to group norms.