The Market Has an Expected Return of 11

question 69

Multiple Choice

The market has an expected return of 11.4 percent and a risky asset with a beta of 1.18 has an expected return of 13 percent.Based on this information,what is the pure time value of money?

• A)1.84 percent
• B)1.90 percent
• C)2.38 percent
• D)2.51 percent
• E)2.90 percent

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Definitions:

Empyema

The accumulation of pus within a naturally existing anatomical cavity, usually referring to the pleural space.

Pleural Cavity

The thin fluid-filled space between the two pulmonary pleurae (visceral and parietal) of each lung.

Pus

a thick, yellowish or greenish opaque liquid produced in infected tissue, consisting of dead white blood cells and bacteria with tissue debris and serum.

Mediastinum

The central compartment of the thoracic cavity between the lungs, containing the heart, trachea, esophagus, and other structures.