A Stock Has a Beta of 1

question 18

Multiple Choice

A stock has a beta of 1.4 and an expected return of 13.53%.What is the risk-free rate if the market rate of return is 10.6%?

• A) 2.825%
• B) 3.250%
• C) 3.275%
• D) 3.415%

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Definitions:

Team Structure

A structure that uses permanent and temporary cross-functional teams to improve lateral relations.

Sense Identification

The process of recognizing and understanding one's feelings, surroundings, or the current situation; often used in the context of personal or organizational development.

Productive Meeting

A meeting in which participants achieve objectives efficiently in a focused and time-bound manner.

Conflicting Loyalties

A situation in which an individual or entity faces competing allegiances or commitments, making it difficult to satisfy all parties involved.