Hastings Entertainment Has a Beta of 1

question 96

Multiple Choice

Hastings Entertainment has a beta of 1.24. If the market return is expected to be 10 percent and the risk-free rate is 4 percent, what is Hastings' required return?

• A) 11.44 percent
• B) 12.44 percent
• C) 14.96 percent
• D) 16.40 percent

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Definitions:

Psychological Needs

Fundamental human requirements that are essential for mental health and well-being, including needs for autonomy, competence, and relatedness.

Autonomy Support

Providing employees with choice and encouragement for personal initiative.

Autonomy Support

is a management approach that involves understanding and encouraging employees’ self-initiated actions, promoting a sense of freedom and choice in their work.

Personal Initiative

The self-starting and proactive action that an individual takes to go beyond the basic requirements and bring about positive change.