Stock Y Has a Beta of

question 3

Multiple Choice

Stock Y has a beta of .79 and an expected return of 7.93%. Stock Z has a beta of 1.31 and an expected return of 12.3%. What is the risk-free rate of return assuming that both Stock X and Stock Y are correctly priced?

• A)1.20%
• B)1.29%
• C)1.43%
• D)2.83%
• E)3.30%

---

Definitions:

Dogmatic/Authoritarian Followers

Individuals who follow leaders with an unquestioning belief in their authorities, often accepting and enforcing strict adherence to rules and doctrines without flexibility.

Directive Style

A leadership approach characterized by giving explicit instructions, closely supervising followers, and expecting immediate compliance.

Path-Goal Theory

A leadership theory that suggests a leader's behavior is contingent on the satisfaction, motivation, and performance of subordinates.

Directive

An instruction or order given by someone in authority, guiding actions or strategies in various contexts.