Zoom,Inc Stock Has a Beta of 1

question 94

Multiple Choice

Zoom,Inc. stock has a beta of 1.5. The risk-free rate of return is 3.7% and the market rate of return is 9.5%. What is the amount of the risk premium on Zoom stock?

• A) 5.8%
• B) 8.7%
• C) 9.5%
• D) 10.25%
• E) 14.25%

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Definitions:

Economic Growth

is an increase in the production of goods and services in an economy over a period of time, often measured by GDP.

Entrepreneurial Ability

is the skill set and initiative to start, manage, and succeed in a new business venture or enterprise.

Resources

refer to assets, materials, or inputs used to produce goods and services, including natural resources, human skills, and capital.

Production Possibilities Curve

A graph that shows the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently utilized.