Suppose That Gold Digger's Beta Is -0

question 102

Multiple Choice

Suppose that Gold Digger's beta is -0.8.If the market risk premium is 8% and the risk-free interest rate is 4%,then the expected return for Gold Digger's stock is?

• A)-2.4%
• B)4.8%
• C)2.4%
• D)10.4%

---

Definitions:

Bottom-Up Processing

A cognitive process that starts with raw sensory data and builds up to higher-level perception and understanding.

Locke

John Locke was an English philosopher and physician, widely regarded as one of the most influential Enlightenment thinkers and commonly known as the "Father of Liberalism."

Kant

Immanuel Kant, an influential philosopher in the history of Western philosophy, known for his work in epistemology, ethics, and aesthetics.

Gibson

A surname potentially referencing James Gibson, a psychologist known for his work on the ecological approach to visual perception.