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%

Appreciate the importance of negotiation, conflict resolution, and understanding others’ goals in exercising power effectively.

Recognize the importance of personal development strategies within professional settings.

Distinct the concepts of reward power from coercive power and their respective impacts on organizational effectiveness.

Realize the implications of authority, specifically referent power and its scope in the workplace.

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Definitions:

Desired Rate

An objective or target rate, often referring to performance metrics, interest rates, or return on investment goals set by an individual or organization.

Average Rate of Return

The average rate of return is a financial ratio that calculates the return, typically on an investment, over a specific period of time expressed as a percentage of the initial cost.

Automatic Insertion Machine

A machine used in manufacturing for automatically placing components onto circuit boards or into their correct positions on a production line.

Accountant

A professional responsible for maintaining and interpreting financial records, ensuring accuracy and compliance with laws and regulations.