The Stock of Big Joe's Has a Beta of 1

question 64

Multiple Choice

The stock of Big Joe's has a beta of 1.38 and an expected return of 16.26 percent.The risk-free rate of return is 3.42 percent.What is the expected return on the market?

• A)7.60 percent
• B)8.04 percent
• C)9.30 percent
• D)12.72 percent
• E)12.16 percent

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Definitions:

Jews

Ethnic and religious group historically originating from the Hebrew people of Israel, with a rich cultural and religious tradition.

Racial Purity

A controversial and debunked ideology that promotes the idea of keeping a race "pure" by preventing intermingling with other races, historically used to justify racist policies and practices.

Racial Discrimination

Unfair treatment of individuals based on their race, resulting in disparities in opportunities, rights, and privileges.

Black Americans

Citizens or residents of the United States who have ancestry from the black racial groups of Africa.