Consider the CAPM

question 47

Multiple Choice

Consider the CAPM. The risk-free rate is 5% and the expected return on the market is 15%. What is the beta on a share with an expected return of 17%?

• A).5
• B).7
• C)1
• D)1.2

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Definitions:

Lev Vygotsky

A prominent Russian psychologist known for his theory on social development and the concept of the Zone of Proximal Development, emphasizing the role of social interaction in cognitive development.

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An individual, typically with a burgeoning interest and background in a scientific discipline, who is at the early stages of their research career.

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