Bama Entertainment Has Common Stock with a Beta of 1

question 9

Multiple Choice

Bama Entertainment has common stock with a beta of 1.46.The market risk premium is 9.3 percent and the risk-free rate is 4.6 percent.What is the expected return on this stock?

• A)16.31 percent
• B)16.67 percent
• C)17.40 percent
• D)18.03 percent
• E)18.13 percent

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Definitions:

Zygote

The initial cell formed when two gamete cells (sperm and egg) are joined through fertilization, representing the earliest stage of development.

Polyploid

The condition of having more than two sets of chromosomes per nucleus. Compare with diploid and haploid.

Hornworts

A group of non-vascular plants belonging to the phylum Anthocerotophyta, characterized by a horn-like structure bearing reproductive organs.

Liverworts

A group of non-vascular plants in the division Marchantiophyta, known for their liver-shaped gametophytes.