A Stock Has a Beta of 1

question 48

Multiple Choice

A stock has a beta of 1.58 and an expected return of 16.2 percent.The risk-free rate is 3.8 percent.What is the market risk premium?

• A) 7.85 percent
• B) 10.01 percent
• C) 11.72 percent
• D) 12.50 percent
• E) 13.40 percent

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Definitions:

Trimethylborate

A chemical compound with the formula B(OCH3)3, used as a reagent in organic synthesis and as a flame retardant.

M+2 Peak

A peak in mass spectrometry representing molecules with two more units of mass than the base molecular ion, often due to the presence of isotopes such as sulfur-34 or chlorine-37.

MS Peak

A peak in mass spectrometry that represents ions of specific mass-to-charge ratios, providing information about the molecular weight or structure of the analyte.

M+2 Peak

In mass spectrometry, this peak results from molecules containing two isotopes heavier than the most common isotopes (such as two chlorines), indicating the presence of elements like Sulfur or Chlorine.