Worth While Entertainment Has Common Stock with a Beta of 1.46

question 81

Multiple Choice

Worth While Entertainment has common stock with a beta of 1.46. The market risk premium is 9.1 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) 17.89 percent
• E) 18.23 percent

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Definitions:

Ambushing

A tactic in communication or debate where one listens to the speaker with the intent to attack or counter their arguments rather than to understand.

Attribution Distortion

The tendency to inaccurately attribute causes or reasons to behaviors or events often leading to biased judgment.

Self-Preoccupation

An excessive focus on oneself and one's own needs, often at the expense of others.

Defensiveness

A psychological reaction that occurs in response to perceived threats to one's self-esteem or self-concept.