The Common Stock of Jensen Shipping Has an Expected Return

question 74

Multiple Choice

The common stock of Jensen Shipping has an expected return of 14.7 percent.The return on the market is 10.8 percent and the risk-free rate of return is 3.8 percent.What is the beta of this stock?

• A).92
• B)1.23
• C)1.33
• D)1.41
• E)1.56

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Definitions:

Normative

Relates to establishing, relating to, or deriving from a standard or norm, particularly in the context of ethics or societal norms.

Instrumental

Characterized by practicality and utility, often prioritizing efficiency and effectiveness towards achieving a goal.

Rational

Pertaining to actions, decisions, or beliefs that are based on reason or logical analysis rather than emotions or irrational factors.

Collective Nature

The inherent characteristics or behaviors that emerge from the interactions and relationships within groups or societies.