What Rate of Return Should an Investor Expect for a Stock

question 35

Multiple Choice

What rate of return should an investor expect for a stock that has a beta of 0.8 when the market is expected to yield 14% and Treasury bills offer 6%?

• A) 9.2%
• B) 11.2%
• C) 12.4%
• D) 12.8%

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Definitions:

Negative Organizational News

Information regarding adverse events, decisions, or conditions within an organization that must be communicated to stakeholders in a carefully crafted manner.

Element of Surprise

An unexpected event or fact in a situation that can dramatically alter perceptions or outcomes.

Direct Approach

A communication style in which the main point is presented at the beginning, followed by supporting details.

Negative Organizational News

Information about setbacks, failures, or unfavorable conditions within an organization that can impact its stakeholders' perceptions and morale.