The Expected Return on HiLo Stock Is 13

question 108

Multiple Choice

The expected return on HiLo stock is 13.99% while the expected return on the market is 11.5%.The beta of HiLo is 1.3.What is the risk-free rate of return?

• A)2.8%
• B)3.2%
• C)3.7%
• D)4.2%
• E)4.5%

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Environment

The surroundings or conditions in which a person, animal, or plant lives or operates.

Focus

Concentration on a particular task or object, maintaining attention on it.

Selective Attention

The process of focusing on a particular object in the environment for a certain period of time, while ignoring irrelevant information.

Engrossed

Deeply absorbed or completely occupied with something, to the point of being unaware of anything else.