The Expected Return for Zbrite Stock Calculated Using the CAPM

question 82

Multiple Choice

The expected return for Zbrite stock calculated using the CAPM is 15.5%.The risk free rate is 3.5% and the beta of the stock is 1.2.Calculate the implied market risk premium.

• A) 5.5%
• B) 6.5%
• C) 10.0%
• D) 15.5%
• E) 12.0%

---

Definitions:

Moratorium

A developmental stage or period of delay in which an individual postpones decisions, often related to identity exploration during adolescence.

Identity Foreclosure

A stage of identity development in which an individual has prematurely committed to an identity without adequate exploration of other options.

Identity Disorder

A psychological condition where an individual experiences confusion or dissonance regarding their personal identity, which can affect their sense of self and overall well-being.

Erik Erikson

A developmental psychologist known for his theory on the psychosocial development of humans, outlining eight stages from infancy to adulthood.