Given Birdchip's Beta of 1

question 42

Multiple Choice

Given Birdchip's beta of 1.25 and a risk free rate of 6 percent,what is the expected rate of return assuming a 12 percent market return?

• A) 1%
• B) 10%
• C) 11%
• D) 12%
• E) 31%

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Definitions:

Fixated

In psychoanalytic theory, a term referring to the inability to progress beyond one of Freud’s psychosexual development stages, resulting in certain personality traits.

Genital Stage

In Freud's psychosexual stages of development, the final stage beginning in puberty where sexual energy is focused on the genitals, and the individual has an interest in mature sexual relationships.

Latency Stage

The latency stage is a phase in Freudian psychosexual development occurring from age six to puberty, characterized by a decrease in sexual urges and interest.

Development

The process of growth, change, and improvement in a particular aspect, such as physical, cognitive, or social development.