The Common Stock of Jensen Shipping Has an Expected Return

question 24

Multiple Choice

The common stock of Jensen Shipping has an expected return of 15.4 percent. The return on the market is 11.2 percent, the inflation rate is 3.1 percent, and the risk-free rate of return is 3.6 percent. What is the beta of this stock?

• A) 1.46
• B) 1.23
• C) 1.33
• D) 1.41
• E) 1.55

---

Definitions:

Level Shift

A sudden, lasting change in the time series data that can significantly affect the data's trend, usually detected through statistical analysis.

Cycle

In the context of data analysis, a period or sequence of events that repeats regularly.

Trend

The general direction in which something is developing or changing over time.

Control Chart

A graphical tool used in process control to display how a process changes over time, highlighting whether the process stays within predetermined control limits.