Collectibles Corp

question 87

Multiple Choice

Collectibles 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:

Breadth

The range or variety of products or services offered by a company or available within a market.

Depth

The number of categories within a product line.

Product Line Expansion

Adding related products to an existing product line to cater to a broader market or capitalize on the brand's reputation.

Consumer Products

Goods produced for personal use by the general public, including a wide range of items from household goods to personal electronics.