Zacher Co'S Stock Has a Beta of 1

question 19

Multiple Choice

Zacher Co.'s stock has a beta of 1.40, the risk-free rate is 4.25%, and the market risk premium is 5.50%.What is the firm's required rate of return?

• A) 11.36%
• B) 11.65%
• C) 11.95%
• D) 12.25%
• E) 12.55%

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Definitions:

Orally

Via the mouth; it often refers to the method of taking medication, consuming food, or the transmission of stories and information by speech.

Container

An object used for holding, storing, or transporting items, varying in size, shape, and material.

Sublingually

The method of administering drugs by placing them under the tongue for absorption through the mucous membranes.

Under

Positioned beneath or below a certain point or level, often indicating lower position or rank.