What Is the Expected Return on a Share with a Beta

question 54

Multiple Choice

What is the expected return on a share with a beta of 0.8, given a risk-free rate of 3.5% and an expected market return of 15.5%?

• A)3.8%
• B)13.1%
• C)15.6%
• D)19.1%

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Definitions:

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A medical facility specializing in the diagnosis and treatment of mental health disorders.

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A process in behaviorism where a behavior increases in frequency because it is followed by the removal or avoidance of an unpleasant stimulus.

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A behavioral principle where the removal of an undesirable or aversive stimulus following a behavior increases the likelihood of that behavior being repeated.