If the Beta of Microsoft Is 1

question 2

Multiple Choice

If the beta of Microsoft is 1.13, risk-free rate is 3% and the market risk premium is 8%, calculate the expected return for Microsoft.

• A) 12.04%
• B) 15.66%
• C) 13.94%
• D) 8.65%

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Definitions:

End-stage Death

End-stage death refers to the final phase of a terminal illness where death is imminent and treatments no longer provide curative effects, focusing on palliative care.

Wet Lips

A condition in which the lips retain moisture, often considered a sign of adequate hydration but can also result from saliva, balms, or other external factors.

Hospice Care

Supportive care provided to patients in the final phase of a terminal illness, focusing on comfort and quality of life, rather than cure.

Life Expectancy

The average period a person is expected to live, based on statistical averages of age, sex, and other factors in a given population.