If the Risk-Free Rate Is 7 Percent, the Expected Return

question 73

Multiple Choice

If the risk-free rate is 7 percent, the expected return on the market is 10 percent, and the expected return on Security J is 13 percent, what is the beta of Security J?

• A)1.0
• B)1.5
• C)2.0
• D)2.5
• E)3.0

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Definitions:

Inventory Worksheet

A document or spreadsheet used in business to track items in stock, detailing quantity, location, and status of products or assets.

Product Names

The unique identifiers or titles given to goods or services offered by companies to distinguish them in the market.

Row A

The first row in a spreadsheet or table, often used for headers or titles.

Column Heading

The title or label of a column in a table or spreadsheet, indicating the nature of the data it contains.