The Market Has an Expected Return of 11

question 52

Multiple Choice

The market has an expected return of 11.3% and a risky asset with a beta of 1.18 has an expected return of 13%. Based on this information, what is the pure time value of money?

• A)1.86%
• B)1.90%
• C)2.38%
• D)2.51%
• E)2.90%

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Definitions:

Confidence Interval

A range of values, derived from a dataset, that is used to estimate the likelihood of containing the true mean or proportion of the whole population.

Degrees of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution, typically influencing the shape of the distribution.

Confidence Interval

A range of values derived from sample statistics that is likely to contain the value of an unknown population parameter.

Confidence Interval

Various values, obtained from sample measures, that are likely to contain the essence of an unknown population parameter.