What Is the Expected Return on Asset a If It

question 356

Multiple Choice

What is the expected return on asset A if it has a beta of 0.3, the expected market return is 14%, and the risk-free rate is 5%?

• A) 6.0%
• B) 9.2%
• C) 7.2%
• D) 7.7%
• E) 4.5%

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Definitions:

Constructive Criticism

Feedback provided in a way that acknowledges both strengths and areas for improvement, intended to help the recipient grow.

Nonverbal Cues

Forms of communication without the use of spoken language, including gestures, facial expressions, body language, and tone of voice, that can convey messages or emotions.

Feedback

Information provided about reactions to a product, a person's performance of a task, etc., used as a basis for improvement.

Effectively Overcome

To successfully deal with or surmount a challenge, obstacle, or difficulty through efficient and strategic means.