A Risky Asset Has a Beta of

question 40

Multiple Choice

A risky asset has a beta of .90 and an expected return of 7.4 percent.What is the reward-to-risk ratio if the risk-free rate is 2.69 percent?

• A)4.04 percent
• B)5.23 percent
• C)6.51 percent
• D)8.41 percent
• E)11.59 percent

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Definitions:

Cooperativeness

The inclination or practice of working jointly with others for a common purpose or benefit.

Task Interdependence

The degree to which tasks within an organization require coordination and cooperation among employees or teams.

Resource Scarcity

A situation in which there are insufficient resources to satisfy the needs and desires of all individuals or entities, leading to competition and potential conflict.

Ambiguous Rules

Rules or guidelines that are not clearly defined or that can be interpreted in multiple ways, often leading to confusion or inconsistency in application.