Stock XYZ Has a Beta of 1

question 6

Multiple Choice

Stock XYZ has a beta of 1.6 and a required rate of return of 15.75%.What is the risk-free rate if the market rate of return is 12%?

• A)3.25%
• B)3.75%
• C)4.50%
• D)5.75%

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Definitions:

Social Organizations

Structured groups of people that come together to pursue shared goals or perform specific functions within society.

Liberal Feminism

A branch of feminism that focuses on achieving gender equality through political and legal reform.

Mary Wollstonecraft

An 18th-century British writer, philosopher, and advocate of women's rights, best known for her work "A Vindication of the Rights of Woman".

John Stuart Mill

A 19th-century British philosopher, political economist, and civil servant known for his contributions to social theory, political theory, and utilitarianism.