A Risky Asset Has a Beta of 1

question 26

Multiple Choice

A risky asset has a beta of 1.40 and an expected return of 17.6 percent.What is the risk-free rate if the risk-to-reward ratio is 8.4 percent?

• A) 2.74 percent
• B) 4.03 percent
• C) 4.33 percent
• D) 5.32 percent
• E) 5.84 percent

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Definitions:

Parental Disinterest

The lack of involvement or concern by parents in their child's education and wellbeing.

Cultural Responsiveness

An approach in which the cultural knowledge, prior experiences, frames of reference, and performance styles of ethnically diverse students are recognized and utilized to make learning more relevant and effective.

Dominant Cultural Perspective

The viewpoint of the majority or prevailing culture in a society, which often sets norms and standards that marginalize other perspectives.

Cultural Deficit Model

A controversial perspective that attributes the lower academic achievements of certain cultural groups to deficiencies in their cultural background.