You Are Considering an Investment in Citizens Bank Corp

question 63

Multiple Choice

You are considering an investment in Citizens Bank Corp.The firm has a beta of 1.6.Currently,U.S.Treasury bills are yielding 2.75% and the expected return for the S & P 500 is 14%.What rate of return should you expect for your investment in Citizens Bank?

• A) 11.15%
• B) 15.39%
• C) 16.75%
• D) 20.75%

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Definitions:

Punitive Damages

Financial compensation awarded to a plaintiff in a lawsuit that goes beyond what is necessary to compensate for losses, intending to punish the defendant for egregious conduct.

Fraudulent Misrepresentation

Deliberately providing false statements or deceitfully omitting information to induce someone into a contract.

Undue Influence

Improper or manipulative pressure exerted by one person over another in order to change that person's decisions or consent.

Fraudulent Misrepresentation

A false statement of fact made by one party to another party, which has the effect of inducing that party into the contract.