Stock X Has a Beta of

question 33

Multiple Choice

Stock X has a beta of .95 and an expected return of 10.8 percent.Stock Y has a beta of 1.2 and an expected return of 13.1 percent.What is the risk-free rate of return assuming that both stock X and stock Y are correctly priced?

• A)1.10 percent
• B)1.20 percent
• C)2.06 percent
• D)3.30 percent
• E)3.50 percent

---

Definitions:

Computer Program

A set of instructions written in a programming language that is executed by a computer to perform specific tasks.

Common Use

Refers to the practice or item that is widely accepted and utilized by the general public or within a certain industry.

Moral Rights

Refers to the rights of creators to have their work attributed to them and to object to any derogatory treatment of it, protecting the personal and reputational connection between the creator and their creation.

Industrial Design Act

Legislation that provides protection for the visual design of objects that are not purely utilitarian, covering the creation of shapes, configurations, or looks of industrial products or parts.