Suppose Barges Plc's Equity Has an Expected Return of 12

question 45

Multiple Choice

Suppose Barges plc's equity has an expected return of 12%.Assume that the risk-free rate is 5%,and the market risk premium is 6%.If no unsystematic influence affected Barges' return,the beta for Barges is ______ .

• A)1.00
• B)1.17
• C)1.20
• D)2.50
• E)It is impossible to calculate with the information given.

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Definitions:

Autism Spectrum Disorder

A developmental disorder characterized by difficulties in social interaction, communication, and by restricted and repetitive behaviors.

Multifinality

The principle in developmental psychology that similar early experiences can lead to different outcomes in individuals.

Equifinality

A principle from systems theory suggesting that different actions in a given context can lead to the same outcome.

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Unusual difficulty with reading; thought to be the result of some neurological underdevelopment.