Marble Corp

question 54

Multiple Choice

Marble Corp.has a beta of 2.5 and a standard deviation of returns of 20%.The return on the market portfolio is 15% and the risk-free rate is 4%.According to CAPM,what is the required rate of return on Collectible's stock?

• A) 37.5%
• B) 31.5%
• C) 26.5%
• D) 23.5%

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Heuristic Processing

A method of decision-making or reasoning based on simplified strategies or 'rules of thumb', rather than systematic analysis.

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