The Risk-Free Rate of Return Is 3

question 92

Multiple Choice

The risk-free rate of return is 3.68 percent and the market risk premium is 7.84 percent.What is the expected rate of return on a stock with a beta of 1.32?

• A)9.17 percent
• B)9.24 percent
• C)13.12 percent
• D)14.03 percent
• E)14.36 percent

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Definitions:

Retail Business

Enterprises that sell goods directly to consumers, typically through physical stores or online platforms, involving direct interaction with end-users.

Business Revenues

The income that a business receives from its normal business activities, usually from the sale of goods and services to customers.

Obtain Resources

The act of securing the assets, finances, or materials required by a business or organization to operate and achieve its objectives.

Corporation

A legal entity that is separate and distinct from its owners, capable of owning property, carrying on business, and suing or being sued.