What Is the Beta of a Security with an Expected

question 106

Multiple Choice

What is the beta of a security with an expected return of 12% if Treasury bills yield 6% and the market risk premium is 8%?

• A) 0.50
• B) 0.75
• C) 0.90
• D) 1.50

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Definitions:

Operating Expense

Costs associated with the day-to-day operations of a business, excluding the cost of goods sold.

Sales

The total amount of revenue generated by the selling of goods or services.

Sales Invoice

A document issued by a seller to a buyer that lists products or services provided and states the sum due for these.