A Security Has an Expected Rate of Return of 0

question 9

Multiple Choice

A security has an expected rate of return of 0.10 and a beta of 1.1.The market expected rate of return is 0.08 and the risk-free rate is 0.05.The alpha of the stock is

• A)1.7%.
• B)-1.7%.
• C)8.3%.
• D)5.5%.
• E)none of the above.

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Definitions:

Raped

The act of sexual assault, typically involving sexual intercourse, initiated by one or more individuals without the consent of the victim.

Gang Rape

A criminal act where multiple individuals sexually assault a single victim, often involving coercion and violence.

Social Need

Essential aspects of human life that require fulfillment through interaction with others, including belonging, love, and respect.

Sexual Desire

The urge or wish for sexual activity and intimacy.