Suppose That the Simmons Corporation's Common Stock Has a Beta

question 34

Multiple Choice

Suppose that the Simmons Corporation's common stock has a beta of 1.6. If the risk-free rate is 5% and the market risk premium is 4%, the expected return for Simmons' common is:

• A) 4.0%.
• B) 5.0%.
• C) 5.6%.
• D) 10.6%.
• E) 11.4%.

---

Definitions:

Cerebellum

A region of the brain that plays a vital role in motor control, and is also involved in some cognitive functions such as attention and language.

Dendritic Networks

Complex branching structures of dendrites in neurons that are involved in receiving and integrating synaptic signals.

Gliomas

A type of tumor that occurs in the brain and spinal cord, arising from glial cells.

Meningiomas

A type of brain tumor that arises from the meninges, the protective membranes that cover the brain and spinal cord.