A Risky Asset Has a Beta of 1

question 69

Multiple Choice

A risky asset has a beta of 1.30 and an expected return of 10.3%. What is the reward-to-risk ratio if the risk-free rate is 1.34%?

• A)3.98%
• B)5.23%
• C)6.89%
• D)7.23%
• E)8.23%

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Definitions:

Remedies of Damages

Legal means to recover compensation or rectify harm caused by breaches of contract, torts, or other legal infringements.

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Negligent Misrepresentation

A false statement made carelessly that induces someone to act to their detriment, creating legal liability.

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Exaggerated or boastful statements about a product or service that are not meant to be taken literally and are thus not legally binding promises or warranties.