You Are Holding a Stock Which Has a Beta of 2.0

question 68

Multiple Choice

You are holding a stock which has a beta of 2.0 and is currently in equilibrium. The required return on the stock is 15 percent, and the return on an average stock is 10 percent. What would be the percentage change in the return on the stock, if the return on an average stock increased by 30 percent while the risk-free rate remained unchanged?

• A) +20%
• B) +30%
• C) +40%
• D) +50%
• E) +60%

Recognize the role of institutions (e.g., pharmaceutical companies, insurance companies) in determining patient care.

Comprehend the arguments related to intelligence, genetics, and environment presented in "The Bell Curve".

Acknowledge the disparities in educational and health outcomes based on race and social class.

Analyze the implications of bureaucratization and privatization in the health care system.

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Definitions:

Positive

Refers to a condition or state that is constructive, optimistic, or characterized by a beneficial outcome.

Unrelated

Not connected or relevant to something.

Prevalence

The percentage of people identified with a disease or condition at a given moment.

Incidence

a measure used in epidemiology to refer to the rate at which new cases of a disease or condition occur in a population over a specified period of time.