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

question 17

Multiple Choice

Assume that the risk-free rate of return is 4%,and the expected return on the market portfolio is 10%.If the expected return of ABC is 12%,calculate the firm's beta using the Capital Asset Pricing Model (CAPM) .(Round your final answer to 2 decimal places.)

• A) 1
• B) 1.25
• C) 1.33
• D) 1.5

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Definitions:

Combining Form

In language, a form of a word that is used in combination with another form to make a new word, often used in medical terms.

Suffix

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Vowel

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Combining Forms

Parts of words (often derived from Greek or Latin) that carry specific meanings and are used in the construction of medical and scientific terminology.