What Will Happen to the Expected Return on a Stock

question 11

Multiple Choice

What will happen to the expected return on a stock with a Beta of 1.5 and a market risk premium of 9% if the Treasury bill yield increases from 3% to 5%?

• A)the expected return will remain unchanged
• B)the expected return will increase by 1.0%
• C)the expected return will increase by 2.0%
• D)the expected return will increase by 3.0%

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Definitions:

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A field of public health that focuses on promoting, protecting, and improving the health status of people in community settings.

Semicritical Items

Objects that come into contact with mucous membranes or non-intact skin and require a high level of disinfection to prevent infection.

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The process of eliminating or reducing harmful microorganisms from inanimate objects and surfaces, usually through chemicals or heat.

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Specialized tools used for visual examination of the gastrointestinal tract, including the esophagus, stomach, and intestines, to diagnose and sometimes treat conditions.