What Will Happen to the Expected Return on a Stock

question 11

Multiple Choice

What will happen to the expected return on a stock with a Beta of 1.5 and a market risk premium of 9% if the Treasury bill yield increases from 3% to 5%?

• A)the expected return will remain unchanged
• B)the expected return will increase by 1.0%
• C)the expected return will increase by 2.0%
• D)the expected return will increase by 3.0%

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Definitions:

Customer Satisfaction

The degree to which a product or service meets the customer's expectations and the customer's happiness with the purchase.

Superior Customer Service

Providing customers with an exceptional buying experience, characterized by attentive, efficient, and courteous service.

Needs

Basic requirements or essential conditions for an individual to live a healthy and stable life, including physical, emotional, social, and intellectual aspects.

Satisfaction

The feeling of fulfillment or pleasure that comes from achieving something or having one's needs met.