Calculate the Expected Return for D Industries Which Has a Beta

question 59

Multiple Choice

Calculate the expected return for D Industries which has a beta of 1.0 when the risk free rate is 0.03 and you expect the market return to be 0.13.

• A) 8.6%
• B) 9.2%
• C) 11.0%
• D) 12.0%
• E) 13.0%

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Definitions:

Aggregate Demand

The sum of all demands for products and services in an economy, set at a particular price level and time period.

Aggregate Demand

Unified demand for all forms of goods and services in an economic landscape at a determined general price level throughout a certain time period.

Stabilize Output

An economic strategy aiming to maintain consistent levels of production and minimize fluctuations in an economy.

Unemployment Insurance

Unemployment insurance is a government program that provides temporary financial assistance to individuals who have lost their job through no fault of their own, aiming to mitigate economic hardship.