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:

Professionalism

The conduct, behavior, and attitude deemed appropriate for individuals in a work or professional setting, emphasizing competence and ethical standards.

Contingency Fee

A fee arrangement where a lawyer is paid a percentage of the client's winnings in a case, rather than charging a fixed hourly rate.

Provinces

Administrative divisions within a country, often possessing a certain level of governmental autonomy.

Family Law

A branch of law that deals with matters relating to family relationships, including marriage, divorce, child custody, and property distribution.