CIBC Stock Has a Beta of 1

question 84

Multiple Choice

CIBC stock has a beta of 1.2.If the risk-free rate is 1.8%,and the market risk premium is 6.5%,what is the expected return of CIBC stock,according to the CAPM?

• A)7.44%
• B)8.3%
• C)9.6%
• D)7.8%
• E)10%

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Definitions:

Quantitative Trait

A measurable phenotype that depends on the cumulative actions of many genes and the environment.

Alleles

Alternative versions of a gene that produce distinguishable phenotypic effects.

Environmental Conditions

Various factors or circumstances in the environment that can affect living organisms, including temperature, humidity, and pollution levels.

Nucleotides

The basic building blocks of DNA and RNA, consisting of a sugar, a phosphate, and a nitrogenous base.