Blackberry Stock Has a Beta of 1

question 85

Multiple Choice

Blackberry stock has a beta of 1.7.If the risk-free rate is 2.1%,and the market risk premium is 7%,what is the expected return of Blackberry stock,according to the CAPM?

• A)9.8%
• B)10.4%
• C)11.9%
• D)14%
• E)10%

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Definitions:

Independent Variable

The variable in an experiment that is manipulated to observe its effect on the dependent variable.

Manipulate

To control or influence something or someone skillfully, often in an unfair manner.

Control Group

A group in an experiment that does not receive the treatment or intervention and is used as a benchmark to measure how the other tested subjects do.

Fake Cigarettes

Products designed to mimic the appearance and sometimes the sensation of smoking tobacco, often used as aids to quit smoking.