A Stock Has an Expected Return of 15

question 37

Multiple Choice

A stock has an expected return of 15.0 percent,the risk-free rate is 3.2 percent,and the market risk premium is 8.1 percent.What must the beta of this stock be?

• A)0.88
• B)0.94
• C)1.08
• D)1.31
• E)1.46

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Definitions:

Bone Density

A measure of the strength and solidity of bones, often used to diagnose osteoporosis and assess fracture risk.

Physical Activity

Any bodily movement produced by skeletal muscles that requires energy expenditure.

Crepitation

the grating, crackling or popping sounds and sensations experienced under the skin and joints or a crackling sensation due to the presence of air in the subcutaneous tissue.

Bone Spur

A bony growth formed on normal bone, often due to aging or as a response to friction or pressure.