The Risk-Free Rate Is 4

question 78

Multiple Choice

The risk-free rate is 4.5%.The expected return on the market is 13% with a standard deviation of 15%.What is the required rate of return for Stock X if it has a beta of 1.4?

• A)16.40%
• B)18.20%
• C)20.50%
• D)22.70%

---

Definitions:

Materials Requisitions

A document or electronic form that authorizes the transfer of materials from storage to production, specifying types, quantities, and the purpose of the materials needed.

Controlling Account

A controlling account is a summary account in the general ledger that aggregates the total balances of all related subsidiary accounts. It is often used in relation to accounts receivable and payable.

General Ledger

A comprehensive accounting record of all transactions that have taken place over the life of an organization, serving as the primary data source for the financial statements.

Labor Costs

Expenses related to the compensation of employees, including wages, salaries, benefits, and taxes associated with labor.