Determine the Expected Return of a Company's Stock Given a Risk

question 34

Multiple Choice

Determine the expected return of a company's stock given a risk free rate of 7%, an expected market return of 12%, a market risk premium of 5% and a company Beta of 1.5.

• A)115
• B)125
• C)135
• D)145

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Definitions:

Systemic Disorder

A condition that affects multiple organs or systems within the body, often leading to complex health issues.

Low Self-Esteem

A condition where a person holds a diminished or negative view of their worth or capabilities.

Insecurity

Feelings of uncertainty or anxiety about oneself; lack of confidence.

Self-Sabotage

Damaging your own credibility or competence.