Assume the Following Data for a Stock: Risk-Free Rate =

question 52

Multiple Choice

Assume the following data for a stock: Risk-free rate = 5 percent; beta (market) = 1.5; beta (size) = 0.3; beta (book-to-market) = 1.1; market risk premium = 7 percent; size risk premium = 3.7 percent; and book-to-market risk premium = 5.2 percent. Calculate the expected return on the stock using the Fama-French three-factor model.

• A)22.3 percent
• B)7.8 percent
• C)11.5 percent
• D)20.9 percent

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Definitions:

Follower Characteristics

The traits or qualities of individuals who are led by others, which can influence the leadership process.

Work-setting Characteristics

Features or aspects of a workplace environment that affect employees' behavior, performance, and job satisfaction.

Directive Leadership

A leadership style where the leader instructs followers on what to do and how to do it, setting clear guidelines, rules, and expectations.

Ohio State

A reference to a significant body of leadership studies conducted at The Ohio State University focusing on leader behaviors and their effects on group performance and satisfaction.