NM Mining Company Has a Standard Deviation on Its Common

question 50

Multiple Choice

NM Mining Company has a standard deviation on its common stock of 60 percent and a correlation with market returns of 0.65. The market's standard deviation and expected return are 15 percent and 14 percent, respectively, and the risk-free rate of return is 8 percent. What is NM Mining's beta?

• A)3.5
• B)2.6
• C)1.0
• D)0.06

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Definitions:

Payroll Register

A record showing the details of the wages paid to each employee for a specific period.

Payroll Register

A document that summarizes the wages, deductions, and net pay of all employees for a specific payroll period.

Gross Wage

The total amount of salary or wages earned by an employee before any deductions are made.

Employer Cost

The total expense borne by an employer to employ workers, including salaries, benefits, and taxes.