A Stock Has an Expected Return of 15

question 36

Multiple Choice

A stock has an expected return of 15.10% and a beta of 1.30. What is the risk-free rate if the market rate is 13.1%?

• A)6.43%
• B)6.92%
• C)7.01%
• D)7.30%
• E)7.90%

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Definitions:

Cultural Background

The societal, ethnic, or national influences and experiences that contribute to an individual's identity and perspective.

Listening Skills

The ability to effectively receive and interpret messages during communication.

Nonverbal Feedback

Communication that occurs without words, such as gestures, facial expressions, and body language, often reflecting the listener's response or attitude.

Mentally Paraphrase

The practice of silently rewording sentences in one's own words to better understand and retain information.