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

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Definitions:

Trading Votes

The practice of exchanging votes between parties or individuals, often seen in legislative bodies or during elections, to secure mutual benefits or achieve desired outcomes.

Analytical Level

The degree or level at which a problem or scenario is examined or analyzed for deeper understanding or resolution.

Majority Voting

A decision-making rule where the choice that receives more than half of the votes wins, often used in elections and organizational decision-making.

Textbook Selection

The process of choosing textbooks for academic courses, often involving evaluation of content relevance, level of difficulty, and alignment with curriculum goals.