The Expected Return on Justus, Inc

question 96

Multiple Choice

The expected return on Justus, Inc. stock is 15.63% while the expected return on the market is 12.4%. The beta of Justus's stock is 1.48. What is the risk-free rate of return?

• A) 3.97%
• B) 4.20%
• C) 4.68%
• D) 5.21%
• E) 5.67%

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Definitions:

Reparations

Compensation provided for wrongs or injuries, often discussed in the context of payments to descendants of enslaved people.

Sovereignty

The authority of a state to govern itself or another state; a nation's independence and right to self-determination.

Statute of Limitations

Legal provision that sets the maximum time after an event within which legal proceedings may be initiated.

Unemployment Rates

The percentage of the labor force that is jobless and actively seeking employment.