The Risk-Free Rate Is 5% and the Expected Return on the Market

question 79

Multiple Choice

The risk-free rate is 5% and the expected return on the market portfolio is 13%.A stock has a beta of 1.5,what is its expected return?

• A) 17%
• B) 12%
• C) 19.5%
• D) 24.5%

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Definitions:

Bystander Effect

People are less likely to help in an emergency when they are with others than when alone. The greater the number, the less likely it is that anyone will help.

Helping Behaviour

Acts performed with the intent to benefit others, without anticipation of any personal gains.

Victim's Needs

The requirements or help necessary for individuals who have suffered harm or injustice to recover and heal.

Congestive Heart Failure

A chronic condition where the heart's ability to pump blood is inadequate, leading to symptoms like shortness of breath and swelling.