The Expected Return on HiLo Stock Is 14

question 16

Multiple Choice

The expected return on HiLo stock is 14.08 percent while the expected return on the market is 11.5 percent.The beta of HiLo is 1.26.What is the risk-free rate of return?

• A).41 percent
• B)2.01 percent
• C).69 percent
• D)1.58 percent
• E)1.62 percent

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Definitions:

Costs

In biological contexts, refers to the negative consequences or trade-offs associated with certain traits, behaviors, or actions that can affect an organism's survival or reproductive success.

Policing Behavior

Actions taken by individuals within a group to enforce social norms or rules, often to maintain group harmony and cooperation.

Reproductive Skew

A concept in biology that describes the unequal distribution of reproductive opportunities among individuals within a group or population.

Direct Fitness

The genetic contribution an individual makes to the next generation through its own offspring.