What Is the Expected Return on an Asset with a Beta

question 76

Multiple Choice

What is the expected return on an asset with a beta of 2.0,if the risk-free rate of interest is 5% and the expected return on the market portfolio is 10%?

• A)12.5%
• B)20%
• C)10%
• D)15%

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Definitions:

Behavioral Intentions

An individual's plans or motivations to carry out a specific behavior or action.

Plasticity

The degree to which a developing structure or behavior is modifiable due to experience.

Synaptic Pruning

The elimination of neurons as the result of nonuse or lack of stimulation.

Myelination

The process of forming a myelin sheath around the axons of neurons, improving the speed and efficiency of electrical signal transmission in the nervous system.