The Common Stock of Industrial Technologies Has an Expected Return

question 4

Multiple Choice

The common stock of Industrial Technologies has an expected return of 12.4 percent.The market return is 9.2 percent and the risk-free return is 3.87 percent.What is the stock's beta?

• A) 0.42
• B) 1.00
• C) 1.32
• D) 1.42
• E) 1.60

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Definitions:

Rectangular Room

A prism-shaped space with four walls at right angles to each other, typically used to describe a standard room shape.

Circular Rug

A rug in the shape of a circle, often used as a decorative piece in homes.

Radius

The measurement from the middle of a circle to a point on its outer boundary.

Percent

A ratio or fraction expressed as part of 100, used to describe proportions, rates, or relative quantities.