Stock X Has a Beta of

question 44

Multiple Choice

Stock X has a beta of .88 and an expected return of 10.8%. Stock Y has a beta of 1.15 and an expected return of 13.1%. What is the risk-free rate of return assuming that both Stock X and Stock Y are correctly priced?

• A)1.10%
• B)1.20%
• C)2.06%
• D)3.30%
• E)3.50%

---

Definitions:

Ethical Corporate Culture

A work environment where ethical practices, values, and behaviors are promoted and integrated into all aspects of the business.

Character Education

Educational programs and initiatives aimed at developing ethical, responsible, and caring individuals by teaching them values and morals.

Training and Communication

The process of educating employees on the necessary skills for their roles and ensuring effective exchange of information within an organization.

Unique Characteristics

Refers to the distinct attributes or qualities that make an individual or entity different from others.