Determine the Expected Return of a Company's Stock Given a Risk

question 104

Multiple Choice

Determine the expected return of a company's stock given a risk free rate of 7%, an expected market return of 12%, a market risk premium of 5% and a company Beta of 1.5.

• A)0.115
• B)0.125
• C)0.135
• D)0.145

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Definitions:

Narcissists

Individuals who exhibit a pervasive pattern of grandiosity, a need for admiration, and a lack of empathy for others.

Beautiful

A term used to describe something or someone that is aesthetically pleasing or possesses qualities that give great pleasure to the senses or the mind.

Successful

Achieving desired goals and outcomes, or attaining recognition, profit, or the accomplishment of an aim or purpose.

Smarter

Showing a higher level of intelligence or ability to learn and understand things quickly and easily.