A Stock Has an Expected Return of 17

question 13

Multiple Choice

A stock has an expected return of 17.2 percent and a beta of 1.65.The risk-free rate is 5.1 percent.What is the slope of the security market line?

• A)7.25 percent
• B)7.33 percent
• C)7.78 percent
• D)7.92 percent
• E)8.03 percent

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Definitions:

Talented

Having a natural aptitude or skill in a particular area or activity.

Discrimination

Unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, sex, or disability.

Prejudice

A preconceived opinion or judgment towards individuals or groups without sufficient knowledge, often based on stereotypes.

Attitude

A tendency to respond positively or negatively toward a certain person, object, idea, or situation.