Calculate the Expected Return for a Industries Which Has a Beta

question 15

Multiple Choice

Calculate the expected return for A Industries which has a beta of 1.75 when the risk free rate is 0.03 and you expect the market return to be 0.11.

• A) 11.13%
• B) 14.97%
• C) 16.25%
• D) 22.25%
• E) 17.0%

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Definitions:

Rapid Eye Movement

A phase of sleep characterized by fast and random movement of the eyes, associated with vivid dreaming and increased brain activity.

Sleep Time

The duration spent in the state of rest when the body is not awake and conscious, essential for physical and mental health.

Living Matter

Biological material that has the capacity to grow, reproduce, and maintain vital processes.

Water

The odorless and tasteless liquid that descends from the clouds as rain, forms streams, lakes, and seas, and is a major constituent of all living matter.