A Particular Stock Has an Expected Return of 11

question 5

Multiple Choice

A particular stock has an expected return of 11%.If the expected risk premium on the market portfolio is 8%,and the risk-free rate is 5%,what's the stock's CAPM beta?

• A) 1.375
• B) 0.750
• C) 0.846
• D) 0.462

---

Definitions:

Metacognitive Skills

Abilities related to understanding, controlling, and manipulating one's own cognitive processes, such as learning, memory, and problem-solving.

Guided Imagery

A technique used to aid memory of an event or person. For example, a child might be asked to pretend that an event occurred, then create a mental picture of the event and its details.

Eyewitness Testimony

is the account a bystander or victim provides in court, detailing the events they observed, which can be crucial evidence in legal proceedings.

Reality and Fantasy

The distinction between what is truly existent and observable in the physical world and what is imagined or created in the mind.