The Return on the Market Portfolio Is Currently 12

question 15

Multiple Choice

The return on the market portfolio is currently 12%.Mobile Phone Corporation stockholders require a rate of return of 30% and the stock has a beta of 3.2.According to CAPM,determine the risk-free rate.

• A) 9.80%
• B) 6.50%
• C) 4.64%
• D) 3.82%

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Definitions:

Santa Sabina

An early Christian church in Rome known for its architectural significance and well-preserved classical form.

Aula Palatina

An ancient Roman basilica in Trier, Germany, known for its large size and significant historical and architectural value.

Mausoleum

A monumental tomb. The name derives from the mid-fourth-century BCE tomb of Mausolos at Halikarnassos, one of the Seven Wonders of the ancient world.

Depictions

Visual representations or portrayals of subjects, scenes, or ideas in art.