The Return on the Market Portfolio Is Currently 12

question 15

Multiple Choice

The return on the market portfolio is currently 12%.Mobile Phone Corporation stockholders require a rate of return of 30% and the stock has a beta of 3.2.According to CAPM,determine the risk-free rate.

• A) 9.80%
• B) 6.50%
• C) 4.64%
• D) 3.82%

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Definitions:

Math Grades

Numerical or letter assessments representing a student’s proficiency and understanding in mathematics over a given period.

Spatial Abilities

The cognitive capability to process and interpret visual information in space and to visualize and manipulate objects.

Environmental Factors

External elements including physical, chemical, and biological agents that can affect the health and safety of individuals or populations.

Racial Gaps

Disparities that exist between different racial and ethnic groups in various areas such as education, health, wealth, and employment.