Assume That a Security Is Fairly Priced and Has an Expected

question 22

Multiple Choice

Assume that a security is fairly priced and has an expected rate of return of 0.13.The market expected rate of return is 0.13 and the risk-free rate is 0.04.The beta of the stock is

• A) 1.25.
• B) 1.7.
• C) 1.
• D) 0.95.
• E) none of these

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Definitions:

Diversity

The presence of differences within a given setting, including race, ethnicity, gender, age, and other attributes affecting personal experiences and perspectives.

Cohesiveness

Refers to the degree of closeness and solidarity among members of a group.

Group Cohesiveness

The extent to which members of a group feel connected and committed to each other and to the group's objectives.

Threat

A perceived danger or harm that may negatively affect an individual's or organization's well-being.