A Stock Has an Expected Return of 13

question 69

Multiple Choice

A stock has an expected return of 13.6 percent and a beta of 1.10. If the risk-free rate is 5.4 percent, what is the expected return of the market?

• A) 12.60%
• B) 13.05%
• C) 12.85%
• D) 12.59%
• E) 7.45%

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Definitions:

Perception

Processing of sensory stimuli that occurs when the brain interprets information being received from the sensory receptors.

Thermoreceptors

Thermoreceptors are sensory receptors that detect changes in temperature, enabling the sensation of warmth or cold.

Ciliary Muscle

A ring of smooth muscle in the eye's middle layer that changes the shape of the lens for focusing.

Suspensory Ligaments

Fibrous tissues that connect the lens of the eye to the ciliary body, adjusting the lens shape for focusing.