Surf and Spray Inc

question 76

Multiple Choice

Surf and Spray Inc.has a beta equal to 1.8 and a required return of 15% based on the CAPM.If the risk-free rate of return is 4.2%,the expected return on the market portfolio is

• A) 21%.
• B) 19.2%.
• C) 13.4%.
• D) 10.2%.

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Definitions:

Shared Values

Fundamental beliefs and principles that are held in common by members of an organization or group.

Distinguishing Characteristics

Unique attributes or qualities that set an individual, group, or thing apart from others.

Underestimate

To judge something to be smaller or less important than it actually is, often leading to insufficient preparation or understanding.

Within-Culture Variation

refers to the differences in beliefs, behaviors, or practices that exist among individuals or groups within the same culture.