A Stock Has a Beta of 1

question 73

Multiple Choice

A stock has a beta of 1.37 and an expected return of 16.6 percent. The risk-free rate is 4.8 percent. What is the slope of the security market line?

• A) 6.49 percent
• B) 7.28 percent
• C) 8.61 percent
• D) 9.23 percent
• E) 9.99 percent

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Definitions:

Anti-Imperialists

Anti-Imperialists were individuals and groups who opposed imperialism, advocating for the respect of sovereignty and self-determination of all nations.

Philippines

A Southeast Asian country in the Western Pacific, comprising more than 7,000 islands, known for its rich biodiversity and cultural heritage.

Acquisition

Acquisition is the act of obtaining control of a company or significant amount of its shares or assets through purchase or other means.

McKinley's Foreign Policy

The foreign policy initiatives under President William McKinley, notably characterized by U.S. expansionism and the Spanish-American War of 1898.