The Expected Return on HiLo Stock Is 13

question 64

Multiple Choice

The expected return on HiLo stock is 13.69% while the expected return on the market is 11.5%. The beta of HiLo is 1.3. What is the risk-free rate of return?

• A) 2.8%
• B) 3.1%
• C) 3.7%
• D) 4.2%
• E) 4.5%

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Definitions:

Hypothalamus

A region of the brain below the thalamus, responsible for coordinating both the autonomic nervous system and the activity of the pituitary, regulating body temperature, thirst, hunger, and other homeostatic systems.

Hippocampus

A region of the brain involved in the formation of new memories and associated with learning and emotions.

Amygdala

A region of the brain within the temporal lobe, crucial for emotion processing, memory, and decision-making.