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:

Avoided

Deliberately staying away from or not doing something.

Listening

The active process of receiving, interpreting, and responding to verbal messages and non-verbal cues.

Resistant

The quality of being opposed to or defending against something, such as change, disease, or certain materials and substances.

Ideas

Mental concepts or thoughts that represent a person's understanding or imagination, which can be the basis for creativity, problem-solving, and innovation.