Elephant Company Common Stock Has a Beta of 1

question 67

Multiple Choice

Elephant Company common stock has a beta of 1.2.The risk-free rate is 6 percent and the expected market rate of return is 12 percent.Determine the required rate of return on the security.

• A)7.2%
• B)14.4%
• C)19.2%
• D)13.2%

---

Definitions:

Foreign Assignments

Tasks or projects assigned to an employee in a location outside their home country, typically for business expansion or operational reasons.

Communication Strategy Continuum

A range of strategic options available for communicating, from fully controlled and direct methods to more open and indirect approaches.

Spray And Pray

A communication strategy where information is sent out to a large audience without targeting or customization, hoping that some of the content will be relevant to some recipients.

Withhold And Uphold

The concept of simultaneously retaining information or reservations while maintaining or supporting certain standards, principles, or laws.