The Expected Return on JK Stock Is 16

question 64

Multiple Choice

The expected return on JK stock is 16.28 percent while the expected return on the market is 11.97 percent. The stock's beta is 1.63. What is the risk-free rate of return?

• A) 2.22 percent
• B) 4.31 percent
• C) 2.42 percent
• D) 4.50 percent
• E) 5.13 percent

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Definitions:

Marketplace

Any physical or digital location where goods and services are exchanged between buyers and sellers.

Conscious Marketing

An ethical approach to marketing that acknowledges a company's broader responsibilities and the impact of its practices on customers, society, and the planet.

Social Responsibility

The obligation of individuals, organizations, or businesses to act for the benefit of society at large.

Community

A group of people living in the same place or having a particular characteristic in common, or a feeling of fellowship with others, as a result of sharing common attitudes, interests, and goals.