Consider the Information Below for Postman Builders Inc $\quad$

question 20

Multiple Choice

Consider the information below for Postman Builders Inc.Suppose that the expected inflation rate and thus the inflation premium increase by 2.0 percentage points,and Postman acquires risky assets that increase its beta by the indicated percentage.What is the firm's new required rate of return? Beta: $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$1.50$
Reqquired return $\left( r _ { s } \right)$ $\quad$$\quad$$\quad$$\quad$ $10.20 \%$
$R \mathrm { R } _ { \mathrm { M } }$ $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ $6.00\%$
percentage increase in beta: $\quad$$\quad$$\quad$ $20 \%$

• A) 14.00%
• B) 14.70%
• C) 15.44%
• D) 16.21%
• E) 17.02%

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Definitions:

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Characterized by a lower than normal interest in sexual activity or desire.

Female Sexual Interest/Arousal

A disorder characterized by a lack of, or significantly reduced, sexual interest or arousal, causing distress or interpersonal difficulty.

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Referring to the experiences or statistics associated specifically with individuals identifying as female throughout their lifetime.

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A cognitive distortion where individuals see things in black-and-white categories, without recognizing any middle ground.