Kelvin Inc

question 12

Multiple Choice

Kelvin Inc. has required return of 15% and a beta of 2. If the risk-free rate is 3%, calculate the slope of the SML.

• A)0.6%
• B)1.2%
• C)3.0%
• D)4.0%
• E)6.0%

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Definitions:

Homeostatic

Pertaining to homeostasis, which is the process by which living organisms maintain a stable internal environment despite changes in external conditions.

Maslow's Hierarchy

A theory of psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization.

Homeostasis

The ability of an organism or environment to maintain stability in response to changes.

Intrinsic Motivation

Motivation driven by an interest or enjoyment in the task itself, rather than relying on external pressures or rewards.