Kollo Enterprises Has a Beta of 0

question 50

Multiple Choice

Kollo Enterprises has a beta of 0.70,the real risk-free rate is 2.00%,investors expect a 3.00% future inflation rate,and the market risk premium is 4.70%.What is Kollo's required rate of return? Do not round your intermediate calculations.

• A) 7.96%
• B) 7.30%
• C) 6.47%
• D) 6.96%
• E) 8.29%

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Definitions:

Weapons Effect

The phenomenon where the mere presence of a weapon can increase the likelihood of aggression.

Gun Show

A public exhibition or fair where firearms and firearm accessories are displayed, bought, and sold.

Aggressively

In a manner showing readiness or intent to attack or confront.

Serotonin Levels

The concentration of the neurotransmitter serotonin in the body, which is implicated in regulating mood, appetite, and sleep, among other functions.