Marble Corp

question 54

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%.According to CAPM,what is the required rate of return on Collectible's stock?

• A) 37.5%
• B) 31.5%
• C) 26.5%
• D) 23.5%

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Definitions:

Simultaneous Game

A strategic scenario where players make their decisions or moves at the same time without knowledge of the other players' choices.

Simultaneous Game

A type of game in strategic game theory where all players make their decisions at the same time, without knowledge of the others' choices.

Nash Equilibrium

A concept of game theory where no participant can gain by unilaterally changing their strategy if the strategies of the others remain unchanged.

Simultaneous Game

A game theory scenario where all players make decisions or select strategies at the same time without knowledge of the other players' choices.