The Expected Return on HiLo Equity Is 13

question 20

Multiple Choice

The expected return on HiLo equity is 13.69% while the expected return on the market is 11.5%.The beta of HiLo is 1.3.What is the risk-free rate of return?

• A)2.8%
• B)3.1%
• C)3.7%
• D)4.2%
• E)4.5%

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Definitions:

Personal Ethics

The set of formal or informal ethical principles that an individual uses to guide their ethical decisions.

Societal Ethics

Principles and standards that guide behavior within society, reflecting beliefs about what is acceptable or unacceptable, right or wrong.

Consumer Buying Patterns

The purchasing habits of individuals or groups, often analyzed for marketing and business strategy.

Data Mining

The process of extracting useful patterns or knowledge from large sets of data, using techniques from statistics, machine learning, and database management.