Security a Has an Expected Rate of Return of 12

question 83

Multiple Choice

Security A has an expected rate of return of 12% and a beta of 1.10.The market expected rate of return is 8% and the risk-free rate is 5%.The alpha of the stock is _________.

• A) -1.7%
• B) 3.7%
• C) 5.5%
• D) 8.7%

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Material Elements

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Media Platform

A digital service or technology that enables content creation, sharing, and engagement among users, often for communication or entertainment purposes.

Material Elements

Physical or tangible components that are part of something larger, contributing to its makeup or construction.

Media Platform

A digital or offline channel that allows for the distribution and consumption of content, such as videos, articles, or music.