The Historical Returns for the Past Three Years for Stock

question 68

Multiple Choice

The historical returns for the past three years for Stock B and the stock market portfolio were Stock B: 24 percent, 0 percent, 24 percent; market portfolio: 10 percent, 12 percent, 20 percent.The expected market return is 12 percent.Calculate the required rate of return (cost of equity) for Stock B using the CAPM.(The risk-free rate of return = 4%.)

• A)8.6 percent
• B)12.6 percent
• C)10.9 percent
• D)16.0 percent

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The process of identifying situations or decisions that involve ethical considerations or moral judgment.

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Fundamental beliefs and ethical principles that are held in common by members of a group, organization, or society, serving as a basis for unity and decision-making.

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A systematic evaluation of an organization's ethical programs and practices, intended to identify strengths and areas for improvement.

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