Light Limited (LL) Has Assumed Its Shareholders Need a 10

question 38

Multiple Choice

Light Limited (LL) has assumed its shareholders need a 10% required rate of return. The market return is 15% for next year. Meanwhile, long term government bonds can be purchased with a yield to maturity of 5%. what is the implied beta for LL?

• A) 0.33
• B) 0.50
• C) 1.00
• D) 1.50
• E) 3.00

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Definitions:

Cognitive Development

The growth and change in intellectual capabilities such as thinking, reasoning, and problem-solving, occurring throughout a person’s lifespan.

Memory Improvement

Techniques or strategies aimed at enhancing an individual's ability to remember information.

Cognitive Therapies

A form of psychotherapy that focuses on changing faulty or distorted thinking patterns, beliefs, and attitudes to improve emotional and behavioral problems.

Metacognitive Skill

This refers to the ability to think about one's own thinking processes and strategies, and to adjust them accordingly for more effective problem solving and learning.