The Common Stock of Industrial Technologies Has an Expected Return

question 18

Multiple Choice

The common stock of Industrial Technologies has an expected return of 15.6 percent. The market return is 11.2 percent and the risk-free return is 4.6 percent. What is the stock's beta?

• A) 0.42
• B) 1.00
• C) 1.32
• D) 1.42
• E) 1.67

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Definitions:

Certiorari

A writ by which a higher court reviews the decision of a lower court, often used in the context of the United States Supreme Court.

Corpus Juris

A comprehensive collection of laws, statutes, or legal principles in a particular area of law.

Voluntary Use

The intentional engagement with a product, service, or substance based on personal choice.

Cocaine

Central nervous system stimulant that causes a rush of positive feelings initially but that can lead to impulsiveness, agitation, and anxiety and can cause withdrawal symptoms of exhaustion and depression.