Suppose the MiniCD Corporation's Ordinary Equity Has a Return of 12%.Assume

question 28

Multiple Choice

Suppose the MiniCD Corporation's ordinary equity has a return of 12%.Assume the risk-free rate is 4%, the expected market return is 9%, and no unsystematic influence affected Mini's return.The
Beta for MiniCD is:

• A)0.89.
• B)1.60.
• C)2.40.
• D)3.00.
• E)It is impossible to calculate beta without the inflation rate.

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Definitions:

Self-reference Effect

The phenomenon where individuals are more likely to remember information that is personally relevant or related to themselves.

Memory Facilitation

The enhancement of memory performance through various techniques or interventions.

Locus of Control Effect

The impact of an individual's belief system regarding the extent to which they have control over the events in their life.

Independence Schema

A cognitive framework centered on self-sufficiency and the ability to function independently from others.