Pixi,Inc Is Adding a New Line of Cosmetics to the Company

question 9

Multiple Choice

Pixi,Inc is adding a new line of cosmetics to the company portfolio and has the following information: the expected market return is 12%,the risk-free rate is 4%,and the expected return on the new project is 28%.What is the beta of the project?

• A)1.60
• B)2.70
• C)3.00
• D)3.90

---

Definitions:

Ownership Right

The legal entitlement to use, control, or dispose of property, assets, or resources as the owner sees fit.

Future Profits

The anticipated financial gains that a business expects to earn in future periods from its operations.

Vigilant Investors

Investors who actively monitor and evaluate their investments and market conditions to protect and grow their assets.