Calculate the Expected Return for C Inc

question 83

Multiple Choice

Calculate the expected return for C Inc.which has a beta of 0.8 when the risk free rate is 0.04 and you expect the market return to be 0.12.

• A) 8.10%
• B) 9.60%
• C) 10.40%
• D) 11.20%
• E) 12.60%

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Definitions:

Storekeeper

A person in charge of the day-to-day operation of a store or warehouse, overseeing inventory and sales.

Sale Price

The final price at which a product or service is sold to consumers.

Bargaining Position

Bargaining position refers to the relative power or advantage one party has over another during negotiations, influencing the terms and outcomes.

Car Dealer

A business that sells new or used automobiles, typically employing salespeople to negotiate prices with customers.