International Geographica Is Adding a New Magazine Project to the Company

question 33

Multiple Choice

International Geographica is adding a new magazine project to the company portfolio and has the following information: the expected market return is 12%, the risk-free rate is 4%, and the expected return on the new project is 20%. What is the beta of the project?

• A) 1.00
• B) 1.50
• C) 1.75
• D) 2.00

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Definitions:

Absolute Differences

The absolute value of the difference between two numbers, disregarding the sign.

Forecast Values

Predicted outcomes or numbers based on statistical models and analysis.

Seasonal Indexes

Factors or numbers that adjust data for seasonal effects, allowing comparisons across different times of the year by normalizing fluctuations.

Forecast

A prediction or estimate of future events, especially regarding weather or economic conditions.