The Rate on T-Bills Is Currently 2

question 92

Multiple Choice

The rate on T-bills is currently 2%.Environment Help Company stock has a beta of 1.5 and a required rate of return of 17%.According to CAPM,determine the return on the market portfolio.

• A) 27.5%
• B) 19.0%
• C) 14.0%
• D) 12.0%

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Definitions:

Distributive Justice

The perceived fairness of the distribution of resources within a society or organization.

Utilitarianism

An ethical theory that suggests the best action is the one that maximizes utility, typically defined as that which produces the greatest well-being of the greatest number of people.

Uncertainty Avoidance

A cultural dimension that describes the extent to which people in a society are uncomfortable with ambiguity, uncertainty, and unstructured situations.

Role Perceptions

An individual’s view and understanding of the responsibilities, behaviors, and actions required by their role within an organizational context.