Asset a Has an Expected Return of 15

question 99

Multiple Choice

Asset A has an expected return of 15%. The expected market return is 14% and the risk-free rate is 4%. What is asset A's beta?

• A) 0.80
• B) 1.10
• C) 1.40
• D) 1.80
• E) 2.00

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Definitions:

Bank Reconciliation

The process of matching and comparing figures from the accounting records against those presented on a bank statement to ensure they are in agreement.

Deposit in Transit

Funds that have been deposited by a company in its bank account but have not yet been recorded by the bank, leading to a timing difference in the company's accounting records.

NSF Notation

A notation made by banks on a bounced check indicating "non-sufficient funds," meaning the account does not have enough money to cover the check.

Service Charge

Fees charged to customers for specific services or as penalties for not meeting certain criteria.