Suppose the MiniCD Corporation's Common Stock Has a Return of 12

question 23

Multiple Choice

Suppose the MiniCD Corporation's common stock has a return of 12%. Assume the risk-free rate is 4%, the expected market return is 9%, and no unsystematic influence affected Mini's return. The beta for MiniCD is:

• A) 0.89.
• B) 1.60.
• C) 2.40.
• D) 3.00.

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Definitions:

Oxygen Saturation

A measure of the amount of oxygen-carrying hemoglobin in the blood relative to the total hemoglobin, indicating the efficiency of oxygen transport.

Auscultation

The act of listening to sounds within the body, typically with a stethoscope, to assess the condition of the heart, lungs, or other organs.

Intercostal Space

The anatomical space between two ribs, which contains intercostal muscles, nerves, and blood vessels, playing a key role in the mechanics of breathing.

Systolic Phase

A phase in the cardiac cycle where the heart contracts, pumping blood out of the ventricles and into the arteries; typically measured as the top number in blood pressure readings.