The Beta Coefficient of Zed Corporation Is Equal to 0

question 76

Multiple Choice

The beta coefficient of Zed Corporation is equal to 0.7 and the required rate of return on the stock equals 12 percent. If the expected return on the market is 12.5 percent, what is the risk-free rate of return? (Round off the answer to two decimal places.)

• A) 11.56%
• B) 10.83%
• C) 9.52%
• D) 12.25%
• E) 8.89%

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Definitions:

Interresponse Time

The amount of time that elapses between two consecutive behaviors or responses.

DRO Schedule

Differential Reinforcement of Other behavior (DRO) is a behavioral strategy where reinforcement is delivered for any behavior that is not a specific undesired behavior.

Differential Reinforcement

A technique that applies reinforcement selectively to specific behaviors while excluding others, aiming to encourage desirable behavior changes.

Response Covariation

A phenomenon where changes in one behavior result in changes in another behavior, suggesting a relationship between behaviors.