The Beta for the DAK Corporation Is 1

question 16

Multiple Choice

The beta for the DAK Corporation is 1.25.If the yield on 30 year T-bonds is 5.65%,and the long term average return on the S&P 500 is 11%.Calculate the required rate of return for DAK Corporation.

• A) 12.34%
• B) 7.06%
• C) 13.74%
• D) 5.35%
• E) 5.65%

---

Definitions:

Categorical

Pertaining to categories or classification, often used in logic to describe statements that assert or deny something about all members of a category.

Quantifier

In logic, an expression (such as "all", "some", or "no") that indicates the quantity of specimens to which a proposition applies.

Atomic Open Sentence

A sentence in formal logic that contains a variable and becomes a proposition when the variable is replaced by a definite term.

Truth-functional

Pertaining to a logical or linguistic expression whose truth or falsehood depends only on the truth or falsehood of its components.