The Risk-Free Rate and the Expected Market Rate of Return

question 80

Multiple Choice

The risk-free rate and the expected market rate of return are 6% and 16%, respectively. According to the capital asset pricing model, the expected rate of return on security X with a beta of 1.2 is equal to ________.

• A) 12%
• B) 17%
• C) 18%
• D) 23%

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Definitions:

Risky Sexual Behavior

Sexual activities that increase the likelihood of contracting sexually transmitted infections (STIs) or resulting in unwanted pregnancies.

Involved Fathers

Fathers who actively participate in their children's lives, taking on roles that include caretaking, emotional support, and engagement in activities.

Temperament

A person’s characteristic emotional reactivity and intensity.

Maturation

The process of becoming mature; the development process in organisms or societies, often seen as a natural growth or evolution pattern.