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:

Sensitive Periods

Specific times in an individual's development when they are more responsive to certain stimuli and quicker to learn particular skills.

Theoretical Framework

A structure of concepts, theories, and propositions that provides an organized way to interpret and understand phenomena.

Piaget's Stage Theory

Piaget's Stage Theory proposes that children progress through four stages of cognitive development, each characterized by different capabilities and ways of processing information: sensorimotor, preoperational, concrete operational, and formal operational stages.

Sociocultural Approach

A theoretical perspective that examines the ways in which social and cultural environments influence human behavior and cognitive processes.