The Equity of Big Joe's Has a Beta a 1

question 89

Multiple Choice

The equity of Big Joe's has a beta a 1.14 and an expected return of 11.6%.The risk-free rate of return is 4%.What is the expected return on the market?

• A)7.60%
• B)8.04%
• C)9.33%
• D)10.67%
• E)12.16%

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Definitions:

Saturated Fat

A type of dietary fat found in animal products and some plant oils, known for raising LDL cholesterol levels.

U.S. Sources

Refers to information or materials originating from the United States, often used in the context of discussions on research, policy, or media.

Calorie-Free

Referring to foods or beverages that contain minimal or no calories, often used in dietary management to reduce energy intake.

Fat-Free

A label for foods that contain less than 0.5 grams of fat per serving, often used to market products as healthier options.