A Security Has an Expected Rate of Return of 0

question 120

Multiple Choice

A security has an expected rate of return of 0.15 and a beta of 1.25.The market expected rate of return is 0.10 and the risk-free rate is 0.04.The alpha of the stock is

• A)1.7%.
• B)-1.7%.
• C)8.3%.
• D)3.5%.
• E)none of the above.

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Definitions:

Low Self-Esteem

A personal evaluation characterized by a feeling of inadequacy and a lack of confidence in one's own abilities or worth.

Accept Criticism

The ability to receive and constructively respond to negative feedback or evaluation.

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Strategies or mechanisms employed by individuals to manage, navigate, or adapt to challenging situations, stressors, or barriers.

Child's Adjustment

The process through which a child adapts to changes or different aspects of their environment, including social, academic, and family situations.