The Market Has an Expected Return of 11

question 24

Multiple Choice

The market has an expected return of 11.3 percent and a risky asset with a beta of 1.18 has an expected return of 13 percent.Based on this information,what is the pure time value of money?

• A) 1.86 percent
• B) 1.90 percent
• C) 2.38 percent
• D) 2.51 percent
• E) 2.90 percent

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Definitions:

U.S. Bureau of Labor Statistics

A government agency that collects, processes, and disseminates a wide range of economic data, including employment, inflation, and productivity statistics.

Nurse Practitioners

Advanced practice registered nurses who have additional education and training in a specialty area, such as family practice or pediatrics.

Product Demand

The desire for a specific good or service supported by the capacity and willingness to purchase it at a given price.

Labor Demand

Labor demand refers to the quantity of labor that employers are willing and able to hire at a given wage rate in a given market.