Loblaw's Stock Has a Beta of 0

question 82

Multiple Choice

Loblaw's stock has a beta of 0.9,while Bombardier stock has a beta of 1.35.If the risk-free rate is 2%,and the market risk premium is 8%,what is the expected return on a portfolio with equal holdings of Loblaw's and Bombardier?

• A)9.25%
• B)8.75%
• C)10%
• D)11%
• E)13.25%

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Definitions:

Larynx

is the voice box located in the throat, responsible for producing sound, protecting the airway during swallowing, and regulating the flow of air during breathing.

Pyloric Sphincter

the muscular valve regulating the passage of food from the stomach to the small intestine.

Muscularis

The layer of muscle found in various parts of the gastrointestinal tract, involved in peristalsis and the control of food movement.

Quadrate Lobes

Generally refers to a lobe of the liver, but "quadrate lobes" as plural is not a standard anatomical term, thus could be considered incorrect without further context.