MNC Corporation Has a Beta of 2

question 40

Multiple Choice

MNC Corporation has a beta of 2.0.The risk-free rate of interest is 5%,and the return on the stock market overall is expected to be 13%.What is the required rate of return on MNC stock

• A) 21%.
• B) 41%.
• C) 16%.
• D) 13%.
• E) none of the above

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Definitions:

Corporate Social Responsibility

A business model that involves practices that benefit society and the environment beyond what is legally required.

Legal Guidelines

Standards and rules established by legislation that guide behavior and business practices.

Discretionary Responsibilities

Responsibilities that allow individuals or managers to make decisions based on their judgment and assessment of a situation.

Corporate Social Responsibility

A business practice that involves participating in initiatives that benefit society, emphasizing ethical behavior, sustainable operations, and community development.