Netflicks, Inc

question 61

Multiple Choice

Netflicks, Inc. has a beta of 3.61. If the market return is expected to be 13.2 percent and the risk-free rate is 7 percent, what is Netflicks' risk premium?

• A)20.91 percent
• B)22.38 percent
• C)25.72 percent
• D)29.38 percent

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Definitions:

Product Itself

Refers directly to the tangible or intangible goods being offered or sold to consumers.

Product Liability Law

Legal principles that hold manufacturers, distributors, suppliers, and retailers accountable for any damages caused by defective or dangerous products.

Tort Law

An area of law that deals with civil wrongs and damages, not arising out of contractual obligations, that one party suffers at the hands of another.

Product Liability

The legal responsibility that manufacturers or sellers have to compensate for harm caused by defective or dangerous products.