Semitool Corp

question 17

Multiple Choice

Semitool Corp. has an expected excess return of 6% for next year. However, for every unexpected 1% change in the market, Semitool's return responds by a factor of 1.2. Suppose it turns out that the economy and the stock market do better than expected by 1.5% and Semitool's products experience more rapid growth than anticipated, pushing up the stock price by another 1%. Based on this information, what was Semitool's actual excess return?

• A) 7%
• B) 8.5%
• C) 8.8%
• D) 9.25%

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Definitions:

Seller Resells

The act of selling a product or service again, typically after buying it from the original seller or manufacturer.

In Transit

Describes goods that are currently being transported from one location to another.

Carrier-ready

A term indicating that a product, particularly in telecommunications, is prepared and available for deployment or distribution by a carrier network.

Transport-ready

A term used to describe goods or items that are prepared and packed for shipping.