Dinner Foods Stock Has a Beta of 1

question 79

Multiple Choice

Dinner Foods stock has a beta of 1.45 and an expected return of 13.43 percent.Edwards' Meals stock has a beta of .95 and an expected return of 10.27 percent.Assume that both stocks are correctly priced.Given this,the risk-free rate is ________ percent and the market rate of return is ________ percent.

• A) 4.02; 11.53
• B) 4.09; 12.35
• C) 4.10; 11.53
• D) 4.27; 10.59
• E) 4.41; 10.25

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Definitions:

Luo Father

A term specific to the Luo community or cultural context, likely referring to a male parental figure or leadership position within the Luo people, an ethnic group in East Africa.

Anglo-American Mother

Anglo-American mother generally refers to a mother of English descent or nationality, particularly in the context of America, often highlighting cultural heritage or identity.

Hypodescent

Refers to a societal rule that assigns a person with mixed ancestry to the social category of the subordinate or minority group rather than the dominant one.

Discriminate

To differentiate or make distinctions between individuals or groups often based on prejudice or unjust grounds such as race, sex, or age.