Required Return If the Risk-Free Rate Is 8 Percent and the Market

question 84

Multiple Choice

Required Return If the risk-free rate is 8 percent and the market risk premium is 2 percent, what is the required return for the market?

• A) 2%
• B) 6%
• C) 8%
• D) 10%

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Definitions:

Feedback Control

A management function that involves observing and adjusting processes based on comparing actual outcomes to planned outcomes to ensure objectives are met.

Concurrent Control

A management process that involves monitoring and adjusting ongoing activities and processes to ensure they meet established standards.

Corrective Action

Measures taken to identify, eliminate, and prevent recurrence of undesirable performances or non-conformities in a process or system.

Feedback Control

A process where outputs are monitored and used to make adjustments to inputs or processes to achieve desired outcomes.