The Stock of Alpha Company Has an Expected Return of 15.5

question 68

Multiple Choice

The stock of Alpha Company has an expected return of 15.5% and a beta of 1.5,and Gamma Company stock has an expected return of 13.4% and a beta of 1.2.Assume the CAPM holds.What's the expected return on the market?

• A) 12%
• B) 7%
• C) 10.3%
• D) 11.2%

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Definitions:

Urine Drainage

The process of removing urine from the body or a medical device used for this purpose, often involving catheters.

Y Tubing

A type of medical tubing that branches into two limbs at one end, often used in transfusions or infusions.

Normal Saline

An isotonic solution of sodium chloride (0.9% NaCl) in water that matches the salt concentration of the body, commonly used for hydration and as a flush for medical catheters.

Citrate-phosphate-dextrose

A solution used in blood storage that acts to stabilize and preserve blood cells.