If IBM Has a Beta of 1

question 38

Multiple Choice

If IBM has a beta of 1.2 when the risk-free rate is 6% and the expected return on the market portfolio is 18%, the expected return on IBM is:

• A) 17.2%
• B) 20.4%
• C) 22.1%
• D) 23.6%

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Definitions:

Work

Engaging in physical or mental activities to achieve a purpose or result, often related to earning a living or contributing to society.

Family Demands

The responsibilities and expectations placed on an individual by their family members, which can include care-taking, household duties, and emotional support.

Educational Demands

The requirements, expectations, and workload placed on students by educational systems, often reflecting academic standards and goals.

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Mutual affectionate relationships between two or more individuals, characterized by trust, support, and communication.