CCC Corp Has a Beta of 1

question 22

Multiple Choice

CCC Corp has a beta of 1.5 and is currently in equilibrium.The required rate of return on the stock is 12.00% versus a required return on an average stock of 10.00%.Now the required return on an average stock increases by 30.0% (not percentage points) .Neither betas nor the risk-free rate change.What would CCC's new required return be?

• A)14.89%
• B)15.68%
• C)16.50%
• D)17.33%
• E)18.19%

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Definitions:

Psychiatric History

A record of an individual's past mental health conditions, treatments received, and outcomes, important for understanding current mental health needs.

Older Adult

An individual in a later stage of life, generally considered to be those aged 65 years and older, often facing unique health and social challenges.

SUD

A term that stands for Substance Use Disorder, a condition that affects an individual's brain and behavior, leading to the inability to control use of substances such as legal or illegal drugs, alcohol, and medications.

Psychiatric Symptoms

Signs or manifestations of a mental disorder, which can affect thoughts, emotions, behaviors, and physical health.