Find Beta, and Determine the Required Rate of Return A) 1261%
B) 8

question 37

Multiple Choice

Find beta, and determine the required rate of return. The market risk premium is 12%, and the risk-free rate is 5%. ? $$\begin{array} { | l | l | } \hline \text { Comparative Returns in the Market } & \text { Returns on the Stock } \\\hline 8 \% & 4 \% \\\hline 9 \% & 10 \% \\\hline 2 \% & 1 \% \\\hline 10 \% & 6 \% \\\hline\end{array}$$

• A) 12.61%
• B) 8.27%
• C) 10.11%
• D) 14.84%

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Definitions:

Progressive

Refers to a tax system where the tax rates increase as the taxable amount increases, often aimed at reducing inequality.

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or service is not achieved.

Personal Taxes

Taxes levied on individuals' income or wealth by a government.

Progressive Tax

A taxation system in which the tax rate increases as the taxable amount increases, placing a higher burden on those who earn more.