Use the Information for the Question(s)below

question 88

Multiple Choice

Use the information for the question(s) below.
Suppose that in the coming year,you expect Exxon-Mobil stock to have a volatility of 42% and a beta of 0.9,and Merck's stock to have a volatility of 24% and a beta of 1.1.The risk-free interest rate is 4% and the market's expected return is 12%.
-The cost of capital for a project with the same beta as Exxon Mobil's stock is closest to:

• A)11.6%.
• B)11.2%.
• C)12.8%.
• D)7.6%.

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Definitions:

Mindfulness

A mental state achieved by focusing one's awareness on the present moment, while calmly acknowledging and accepting one's feelings, thoughts, and bodily sensations.

Calm the Mind

A state or process of making one's mind peaceful and free from stress or anxiety.

Biofeedback

A technique that teaches individuals to control bodily processes that are typically involuntary, like heart rate, using monitoring devices.

Biofeedback

A technique that trains people to improve their health by controlling bodily processes that normally happen involuntarily, such as heart rate.