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:

Personality Traits

Stable characteristics that define an individual's behaviors, thoughts, and feelings, distinguishing one person from another.

Conscientiousness

A personality trait characterized by being organized, dependable, efficient, and disciplined, part of the Big Five personality traits.

Modest Relationship

Refers to a correlation between two variables that is present but not strong or influential in nature.

Factor Analysis

A statistical method used for reducing data complexity by identifying underlying factors that explain the patterns of correlations among variables.