Use the Table for the Question(s)below

question 12

Multiple Choice

Use the table for the question(s) below.
Capital Structure and Unlevered Beta Estimates for Comparable Firms
-The unlevered beta for Oakley is closest to:

• A)0.70.
• B)1.50.
• C)1.00.
• D)0.60.

---

Definitions:

Systematic Risk

The risk of a collapse in an entire financial system or entire market, due to factors such as economic crises, which cannot be avoided through diversification.

Expected Return

The anticipated average return of an investment over a specific period, considering various probable outcomes.

Realized Return

The actual gain or loss experienced on an investment, calculated by taking the difference between the selling price and the purchase price.

Term Life

Term life is a type of life insurance policy that provides coverage at a fixed rate of payments for a limited period, known as the relevant term.