Stock Z Has a Beta of 0

question 15

Multiple Choice

Stock Z has a beta of 0.9 and a required rate of return of 12%.What is the market rate of return if the risk-free rate is 5.25%?

• A)7.50%
• B)12.75%
• C)13.33%
• D)18.58%

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Definitions:

Vitreous Humor

The clear, gel-like substance that fills the space between the lens and the retina of the eyeball.

Intrinsic Eye Muscle

Muscles located within the eye that control its movements and the shape of the lens for focusing.

Ciliary Muscles

Eye muscles that adjust the shape of the lens to focus light on the retina.

Inferior Oblique Muscle

A muscle in the eye that contributes to lateral and upward movement of the eyeball.