Lear Corp Has an Expected Excess Return of 8% Next Year

question 10

Multiple Choice

Lear Corp. has an expected excess return of 8% next year. Assume Lear's beta is 1.43. If the economy booms and the stock market beats expectations by 5%, what was Lear's actual excess return?

• A) 7.15%
• B) 13%
• C) 15.15%
• D) 18.59 %

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Definitions:

Marketing Mix

The set of controllable variables that a business uses to influence consumers' buying decisions, traditionally identified as product, price, place, and promotion.

Cool Mint Chocolate

A flavor profile combining the refreshing taste of mint with the rich, sweet taste of chocolate.

Sustenance

The provision of essentials needed for growth, maintenance, and support, often relating to nourishment or support of life and business activities.

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