Find Beta and Determine the Risk Premium A)1682%
B)20

question 15

Multiple Choice

Find beta and determine the risk premium.The market risk premium is 8% and the risk-free rate is 2%.
$$\begin{array} { | c | c | } \hline \text { Comparative Returns in the Market } & \text { Returns an the Stack } \\\hline 1 [ 2 \% & 8 \% \\\hline 11 \% & 12 \% \\\hline 6 \% & 2 \% \\\hline 5 \% & 1 \% \\\hline\end{array}$$

• A)16.82%
• B)20.76%
• C)10.15%
• D)18.11%

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Definitions:

Efficient Scale

The level of production at which a firm achieves the lowest long-run average cost, with all inputs utilized most effectively.

Surplus

A situation where the quantity supplied of a good or service exceeds the quantity demanded at the current price, often leading to a decrease in prices.

Balance of Trade

The difference in value between a country's imports and exports over a certain period.

Money Inflows

Money inflows refer to the incoming funds to a business, organization, or economy from various sources such as investments, sales, and loans.