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%

---

Definitions:

Young Adults

Individuals in the age group that are transitioning from adolescence to full adulthood, typically aged between 18 to 25 or 30 years old.

One-Parent Families

Household units consisting of a single parent living with their child or children, resulting from various circumstances such as divorce or death of a spouse.

Cohabitating

The act of living together and having a sexual relationship without being married.

Unmarried Women

Women who are not legally bound in marriage; also can refer to women who prioritize individual growth, career, or personal choices over matrimonial commitments.