Vera Paper's Stock Has a Beta of 1

question 9

Multiple Choice

Vera Paper's stock has a beta of 1.40,and its required return is 12.00%.Dell Dairy's stock has a beta of 0.80.If the risk-free rate is 4.75%,what is the required rate of return on Dell's stock?

• A)8.45%
• B)8.67%
• C)8.89%
• D)9.12%

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Definitions:

Oppositional-defiant Disorder

A behavior disorder characterized by a consistent pattern of defiant, disobedient, and hostile behaviors towards authority figures.

Behavioral Requirements

The specific actions or patterns of behavior expected or required in a certain context or environment.

Social Behaviors

Actions within an individual that are directed toward or occur in the presence of others, encompassing a wide range of interactions among individuals or groups.

Control

The power to influence or direct people's behavior or the course of events.