A Stock Has an Expected Return of 15

question 53

Multiple Choice

A stock has an expected return of 15.10 percent and a beta of 1.30.What is the risk-free rate if the market rate is 13.1 percent?

• A) 6.43 percent
• B) 6.92 percent
• C) 7.01 percent
• D) 7.30 percent
• E) 7.90 percent

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Definitions:

Capacity

The maximum amount that something can contain or produce, often referred to in the context of production or processing facilities.

Consideration

In contract law, this refers to something of value that is exchanged between parties as part of an agreement.

Capacity

Capacity refers to the maximum amount of work that an organization is capable of completing in a given period, often determined by the limits of available resources, such as manpower, machinery, or physical space.

Patent Search

A thorough investigation conducted to check if an invention or idea has already been patented by someone else.