According to Value Line, Bestway Has a Beta of 1

question 63

Multiple Choice

According to Value Line, Bestway has a beta of 1.15. If 3-month Treasury bills currently yield 7.9% and the market risk premium is estimated to be 8.3%, what is Bestway's cost of equity capital?

• A) 17.45%
• B) 8.36%
• C) 9.55%
• D) 16.2%

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Definitions:

Extinction

In psychology, the process through which a conditioned response decreases in frequency and eventually disappears.

Artwork

Products of artistic value or creation, encompassing a wide range of forms such as paintings, sculpture, and literature.

Classical Conditioning

Classical conditioning is a learning process where a neutral stimulus becomes associated with a meaningful stimulus and acquires the capacity to elicit similar responses.

Operant Conditioning

A system of learning in which the expression of behavior is controlled through the use of incentives or penalizations.