A Company Has a Beta of 0

question 22

Multiple Choice

A company has a beta of 0.50. If the market return is expected to be 12 percent and the risk-free rate is 5 percent, what is the company's required return?

• A) 6.0 percent
• B) 8.5 percent
• C) 11.0 percent
• D) 13.5 percent

---

Definitions:

Setting A Condition

Establishing a specific requirement or criteria that must be met in a given situation or agreement.

Prospects

Individuals or businesses that are potential customers and have been identified as likely to purchase.

Sales Objection

The prospect’s opposition or resistance to the salesperson’s information or request.

Opposition

Resistance or dissent expressed against an idea, action, or authority.