The Expected Market Return Is 9 Percent

question 45

Multiple Choice

The expected market return is 9 percent.The risk-free rate is 1 percent,and XYZ Co.has a beta of 1.4.XYZ's risk premium is:

• A)8 percent.
• B)11.2 percent.
• C)12.2 percent.
• D)10.3 percent

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Definitions:

Buyers

Individuals or entities that purchase goods or services for consumption or investment.

Market Situations

Scenarios or conditions prevailing in a market that influence the behavior of market participants, including competitiveness, demand, and supply dynamics.

Tax Burden

The measurement of taxes paid by an individual or business, often expressed as a percentage of income or as the total amount of taxes paid.

Buyers

Individuals or entities that purchase goods or services in a market.