T Corporation Has a Standard Deviation on Its Common Stock

question 32

Multiple Choice

T. Corporation has a standard deviation on its common stock of 75 percent and a correlation with market returns of 0.40. 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. Calculate T. Corporation's required rate of return.

• A)1.867%
• B)9.867%
• C)19.20%
• D)14.06%

---

Definitions:

Speaking Outline

A brief and structured summary of points intended to be used as a guide during an oral presentation, helping speakers stay organized and focused on their key messages.

Planning Outline

A structured plan or framework that outlines the main points and structure of a project, essay, or presentation.

Organizational Plan

A strategic framework outlining the structure, processes, and directions of an entity to achieve its goals.

Free-Form Slides

Slide designs without a strict structure, allowing creativity and flexibility in presentation.