A Risky Asset Has a Beta of

question 34

Multiple Choice

A risky asset has a beta of .88 and an expected return of 7.4 percent. What is the reward-to-risk ratio if the risk-free rate is 2.8 percent?

• A) 4.04 percent
• B) 5.23 percent
• C) 6.51 percent
• D) 8.41 percent
• E) 11.59 percent

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Definitions:

Environmental Resistance

The sum of environmental factors such as predators, disease, and competition that limit the growth, distribution, or size of populations.

Carrying Capacity

The maximum population size of a species that an environment can sustain indefinitely, given the food, habitat, water, and other resources available.

Population Size

The total number of individuals within a defined area at a specific time, vital for understanding species survival and ecosystem balance.

Survivorship Curve

A graph showing the number or proportion of individuals surviving to each age for a given species or group.