A Stock Has an Expected Return of 14

question 61

Multiple Choice

A stock has an expected return of 14.5%, the risk-free rate is 4% and the return on the market is 11%. What is this stock's beta?

• A) 1.5
• B) 3.0
• C) 1.05
• D) .94

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Definitions:

Primary Succession

Ecological succession that occurs in an environment in which new substrate devoid of vegetation and usually lacking soil, such as a lava flow or area left from retreated glacier, is deposited.

Forest Fire

Uncontrolled fire occurring in woodland or bush areas, which can have both destructive and beneficial effects on ecosystems.

Succession

The progressive, natural change in an ecosystem's species composition over time, leading to ecological stability.

Facilitation Model

A concept in ecology where some species make conditions more suitable for the establishment and growth of other species in a habitat.