The Risk-Free Rate Is 4

question 84

Multiple Choice

The risk-free rate is 4.6% and the expected return on the market is 10.5%. Stock A has a beat of 1.2. For a given year, Stock A returned 15.9% while the market returned 13.8%. The systematic portion of the return was _________ and the unsystematic portion was _________.

• A) 3.01%; 1.23%
• B) 2.85%; 1.07%
• C) 3.96%; 0.26%
• D) 1.57%; 0.87%
• E) 2.25%; 1.69%

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Definitions:

Dibromocyclopentane

A cyclopentane molecule in which two hydrogen atoms have been replaced by bromine atoms.

Dichloropentane

A type of organic compound that consists of a pentane chain with two chlorine atoms attached, which can exist in multiple isomeric forms.

Alkyl Chloride

A type of organic compound where one or more hydrogens in an alkyl group is replaced by chlorine; often used in organic synthesis and as solvents or intermediates.

Carbon-Chlorine Bond

A covalent bond between a carbon atom and a chlorine atom, often found in organic chlorine compounds.