Emery IncHas a Beta Equal to 1

question 134

Multiple Choice

Emery Inc.has a beta equal to 1.8 and a required return of 15% based on the CAPM.If the market risk premium is 7.5%,the risk-free rate of return is

• A) 4.1%.
• B) 3.4%.
• C) 2.0%.
• D) 1.5%.

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Definitions:

Differentiation Strategy

A business approach aiming to distinguish a product or service from competitors' offerings through unique features, quality, or brand image.

Locally Responsive

The capacity of a business to tailor its products or services to meet the specific needs and preferences of local markets or cultural groups.

National Differences

Encompasses the various distinctions that exist between nations, such as cultural, economic, social, and political differences.

Positioning Strategies

Marketing techniques that businesses use to establish the identity of their products in the eyes of the customer relative to competitors.