A Stock Has an Expected Return of 11 Percent,the Risk-Free

question 21

Multiple Choice

A stock has an expected return of 11 percent,the risk-free rate is 5.2 percent,and the market risk premium is 5 percent.What is the stock's beta?

• A)1.08
• B)1.16
• C)1.29
• D)1.32
• E)1.35

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Definitions:

Long-Day Plant

A plant that flowers only after being exposed to light periods longer than a certain critical length, often found in summer.

Arabidopsis

A genus of small flowering plants, with Arabidopsis thaliana being a widely used model organism in plant biology and genetics.

Day-Neutral Plant

A plant that flowers regardless of the length of the period of light it is exposed to.

Short-Day Plant

A plant that flowers only when the length of daylight is less than a critical duration.