Determine the Risk Free Rate If a Company's Rate of Return

question 92

Multiple Choice

Determine the risk free rate if a company's rate of return is 9%, its Beta is 1.8 and the expected return on the stock market is 10%.

• A)11.25%
• B)12.25%
• C)13.25%
• D)14.25%

---

Definitions:

Frames of Reference

The perspectives, experiences, or contexts through which individuals interpret information or situations.

Channel Overload

A situation where the amount of information or the number of communication channels becomes overwhelming, leading to decreased effectiveness in communication.

Decoding

the process of interpreting or making sense of a message, code, or information.

Gatekeepers

Individuals or entities that control access to information, resources, or decisions within organizations or systems.