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:

File Transfer Protocol (FTP)

A standard network protocol used to transfer files from one host to another over a TCP-based network, such as the Internet.

Hypertext Transfer Protocol (HTTP)

The protocol that allows files to be transferred from a web server so that you can see them on your computer by using a browser.

Uniform Resource Locator (URL)

A website’s unique address; an example is microsoft.com.

Consumer To Consumer (C2C)

An online marketplace where consumers can buy and sell goods and services to each other, typically facilitated by a third-party platform.