A Stock Has an Expected Return of 14

question 34

Multiple Choice

A stock has an expected return of 14.59 percent and a beta of 1.35.What is the risk-free rate if the market rate is 12.7 percent?

• A)6.48 percent
• B)6.92 percent
• C)7.01 percent
• D)7.30 percent
• E)7.90 percent

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Definitions:

Ego

In psychoanalytic theory, the part of the personality that mediates between the demands of the id, the superego, and reality.

Self-Concept

An individual's awareness and perception of their own personality traits, abilities, and characteristics, forming the basis of their self-identity.

Incongruence

The disparity between an individual's self-image and actual experiences, often leading to psychological discomfort.

Archetypes

Universal, instinctive themes and symbols present in the collective unconscious, proposed by Carl Jung, that shape human experiences and behaviors.