Marble Corp

question 61

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%.What is the risk premium on the market?

• A) 5%
• B) 6%
• C) 9.00%
• D) 11%

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Definitions:

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses.

Surveillance Strategy

A plan or method for monitoring and observing individuals, groups, or data to gather information.

Mental Set

A psychological tendency to approach situations in a specific way due to past experiences and habits, which can sometimes hinder problem-solving.

Test Proctors

Individuals responsible for supervising exams to ensure that the rules and regulations are followed by all test-takers.