Marble Corp

question 61

Multiple Choice

Marble Corp.has a beta of 2.5 and a standard deviation of returns of 20%.The return on the market portfolio is 15% and the risk-free rate is 4%.What is the risk premium on the market?

• A) 5%
• B) 6%
• C) 9.00%
• D) 11%

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Definitions:

Physiological Response

The body's automatic reactions to internal or external stimuli, including changes in heart rate, breathing, and hormone levels.

Downward Comparison

A social comparison strategy where individuals compare themselves to others who are less well off in order to feel better about their own situation.

Coping Strategy

A coping strategy is a method or technique that an individual uses to manage and navigate stressful situations, challenges, or emotional conflicts.

Resilience

The capacity to recover quickly from difficulties; toughness or the ability to bounce back from adverse events.