Calculate the Expected Return for F Inc

question 79

Multiple Choice

Calculate the expected return for F Inc.which has a beta of 1.3 when the risk free rate is 0.06 and you expect the market return to be 0.125.

• A) 12.65%
• B) 13.55%
• C) 14.45%
• D) 15.05%
• E) 16.34%

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Definitions:

Recall

The ability to retrieve and access information or memories from the past.

Tangible Results

Outcomes or benefits of an action or process that can be seen, touched, or measured physically.

Factual Communication

The exchange of information that is based strictly on objective facts and evidence, without the influence of personal feelings or opinions.

Central Route

A pathway of persuasion described in the Elaboration Likelihood Model that involves thoughtful consideration of the arguments presented.