A Stock Has a Beta of 1

question 48

Multiple Choice

A stock has a beta of 1.58 and an expected return of 16.2 percent.The risk-free rate is 3.8 percent.What is the market risk premium?

• A) 7.85 percent
• B) 10.01 percent
• C) 11.72 percent
• D) 12.50 percent
• E) 13.40 percent

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Definitions:

Poverty Of Thought

A reduction in the quantity and quality of thought, often manifesting in concrete and simplistic thinking.

Negative Symptom

In psychiatry, symptoms indicating an absence or lack of functions or behaviors normally present, often associated with conditions like schizophrenia.

Word Salad

A jumbled or incoherent mix of words and phrases, typically seen in severe cases of mental illness like schizophrenia.

Psychosis

A mental health condition that affects the way your brain processes information, leading to a loss of contact with reality.