Zoro Corp Has a Beta of 2

question 46

Multiple Choice

Zoro Corp. has a beta of 2.0. The risk-free rate of interest is 5 percent, and the return on the stock market overall is expected to be 13 percent. What is the required rate of return on Zoro stock?​

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

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Definitions:

Improve Quality

The process of making enhancements to the standard of products, services, or processes to increase customer satisfaction and achieve better outcomes.

Lower Costs

A reduction in the expenses incurred by a business or organization, improving profitability.

Supplier Expectation

The set of standards or requirements that suppliers believe they should meet in their dealings with purchasing organizations.

Jidoka

A concept in lean manufacturing that empowers machines and workers to stop the production line when a defect is detected.