Assume That the Risk-Free Rate of Return Is 4%,and the Expected

question 7

Multiple Choice

Assume that the risk-free rate of return is 4%,and the expected return on the market portfolio is 10%.If the systematic risk inherent in the stock of ABC Corporation is 1.80,using the Capital Asset Pricing Model (CAPM) calculate the expected return of ABC.(Do not round intermediate calculations and round your percentage final answer to 1 decimal place.)

• A) 14.0%
• B) 14.8%
• C) 16.0%
• D) 16.8%

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Definitions:

Continuous-yes Close

The continuous-yes close is a sales technique where the salesperson asks a series of questions designed to elicit affirmative answers, leading to a positive response on the sale.

Labor Coverage

An insurance or warranty term that covers the cost of labor in the repair or replacement of covered items.

Alternative Close

A sales technique where the salesperson presents multiple options to the prospect, indirectly nudging them towards making a decision.

Good Deal

A situation or agreement in which a person or party receives great value or advantage, often in terms of quality, price, or terms of sale.