A Stock Has an Expected Return of 11 Percent, the Risk-Free

question 13

Multiple Choice

A stock has an expected return of 11 percent, the risk-free rate is 6.1 percent, and the market risk premium is 4 percent. What is the stock's beta?

• A)1.18
• B)1.23
• C)1.29
• D)1.32
• E)1.35

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Definitions:

Competent

Having the necessary ability, knowledge, or skill to do something successfully.

Cognitive Demands

The mental effort required to complete a task or process information.

Emotional Labour

Emotional labour refers to the process of managing one's feelings and expressions based on the emotional requirements of a job, often involving the suppression or induction of certain emotions.

Pay

The earnings given to an individual by an employer or client in return for their work or services, often specified as an hourly wage or salary.