Your Opinion Is That CSCO Has an Expected Rate of Return

question 38

Multiple Choice

Your opinion is that CSCO has an expected rate of return of 0.15.It has a beta of 1.3.The risk-free rate is 0.04 and the market expected rate of return is 0.115.According to the Capital Asset Pricing Model, this security is

• A)underpriced.
• B)overpriced.
• C)fairly priced.
• D)Cannot be determined from data provided.
• E)None of the options

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Definitions:

Unconscious

Processes or thoughts that occur without conscious awareness, influencing behavior and decision-making.

Networking

Building and maintaining relationships with people who can provide information, advice, and opportunities as one develops professionally or personally.

Organizational Politics

Activities carried out within an organization to acquire, develop, and use power and other resources to obtain one's preferred outcomes in a situation where there is uncertainty or disagreement.

Intentional Damaging

involves deliberate actions taken to harm or degrade an object, person, or reputation.