The Risk-Free Rate Is 5

question 21

Multiple Choice

The risk-free rate is 5.1 percent, the market rate is 13.3 percent, and the expected return on a stock is 15.84 percent. What is the beta of the stock?

• A) .52
• B) .81
• C) 1.13
• D) 1.19
• E) 1.31

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Definitions:

U.S. Goods

Products and commodities that are produced, manufactured, or grown within the United States.

Japanese Economy

The economic system of Japan, characterized by its large industrial capacity, emphasis on technology, and robust export sector.

Exchange Rate

The value of one currency for the purpose of conversion to another currency.

U.S. Dollar

The official currency of the United States of America, widely used for domestic and international transactions.