Hastings Entertainment Has a Beta of 1

question 96

Multiple Choice

Hastings Entertainment has a beta of 1.24. If the market return is expected to be 10 percent and the risk-free rate is 4 percent, what is Hastings' required return?

• A) 11.44 percent
• B) 12.44 percent
• C) 14.96 percent
• D) 16.40 percent

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Definitions:

Associative Learning

The process by which an individual learns to connect or link two stimuli or a stimulus and a behavior, forming new associations.

Instrumental Learning

A learning process in which behavior is modified by the consequences it generates, often involving rewards or punishments to increase or decrease the behavior's occurrence.

Mere Repeated Exposure

The phenomenon by which people tend to develop a preference for things merely because they are familiar with them.

Attitude Polarization

The finding that people’s attitudes become more extreme as they reflect on them