What Is the Expected Yield on the Market Portfolio at a Time

question 61

Multiple Choice

What is the expected yield on the market portfolio at a time when Treasury bills yield 6% and a stock with a beta of 1.4 is expected to yield 18%?

• A) 8.67%
• B) 10.84%
• C) 12.02%
• D)14.57%

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Definitions:

Loss of Control

Refers to the event where an entity no longer has the power to govern the financial and operating policies of another entity to obtain benefits from its activities.

Other Comprehensive Income

Other comprehensive income includes revenues, expenses, gains, and losses that are not included in net income and are directly recorded to equity, reflecting the company's total comprehensive income.

AASB 127

A standard issued by the Australian Accounting Standards Board that deals with consolidated and separate financial statements.

Indirect Non-Controlling Interest

An ownership interest in an entity that is held through another entity, not directly by the owners.