Assume That a Security Is Fairly Priced and Has an Expected

question 132

Multiple Choice

Assume that a security is fairly priced and has an expected rate of return of 0.17.The market expected rate of return is 0.11 and the risk-free rate is 0.04.The beta of the stock is ___.

• A)1.25.
• B)1.86.
• C)1.
• D)0.95.
• E)none of the above.

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Definitions:

Headache

A pain or discomfort in the head, scalp, or neck, often associated with tension, migraine, or other health issues.

Independent Variable

The variable that is manipulated by the researcher to observe its effect on the dependent variable.

Loudness

A subjective perception of the intensity of sound, often measured in decibels, that impacts how sound is experienced.

Noise

Unwanted sound that is loud, unpleasant, or causes disturbance.