If the Market Rate of Return Is 10 Percent and the Beta

question 23

Multiple Choice

If the market rate of return is 10 percent and the beta on a particular stock is .78,the return on the stock will be

• A)Greater than 10 percent
• B)Greater or less than 10 percent,depending on the risk free rate of return
• C)Less than 10 percent
• D)Dependent on some other factor

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Definitions:

Debit

An accounting entry that results in either an increase in assets or a decrease in liabilities on a company's balance sheet or an account record.