Wendy Purchased 800 Shares of Robotics Stock at $3 Per

question 101

Multiple Choice

Wendy purchased 800 shares of Robotics stock at $3 per share on 1/1/09.Wendy sold the shares on 12/31/09 for $3.45.Robotics stock has a beta of 1.3,the risk-free rate of return is 3%,and the market risk premium is 8%.The required return on Robotics stock is

• A) 13.4%.
• B) 16.5%.
• C) 17.6%.
• D) 21.1%.

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Definitions:

Volume

The quantity of three-dimensional space enclosed by a closed surface or the space that a substance (solid, liquid, gas, or plasma) occupies.

Milliliters

A unit of volume in the metric system, equivalent to one thousandth of a liter.

Centimeters

A unit of length in the metric system equal to one hundredth of a meter, commonly used to measure small distances.