Collectibles Corp

question 70

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%.According to CAPM,what is the required rate of return on Collectible's stock?

• A) 37.5%
• B) 31.5%
• C) 26.5%
• D) 23.5%

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Definitions:

Intellectual Development

The growth and changes in a person's ability to think, reason, and understand complex concepts and ideas over time.

Teratogen

Any agent that can cause malformation of an embryo or fetus, including certain drugs, infections, and environmental chemicals.

Placental Barrier

The physical and biochemical barrier formed by the placenta that regulates the exchange of substances between the maternal and fetal bloodstreams.

Unborn Child

A term referring to a fetus or embryo that has not yet been born, specifically in the context of healthcare, legal discussions, or moral debates.