Suppose That Luther's Beta Is 0

question 89

Multiple Choice

Suppose that Luther's beta is 0.9.If the market risk premium is 8% and the risk-free interest rate is 4%,then then expected return for Luther stock is?

• A)7.6%
• B)11.6%
• C)11.2%
• D)12.9%

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Definitions:

Prices

The amount of money expected, required, or given in payment for something, reflecting the value of goods or services in monetary terms.

Maximum Quantity

The highest amount of a product or service that can be produced or offered under given circumstances.

Price of X

The amount of money required to purchase a unit of product X, often influenced by supply and demand dynamics.

Consumer's Income

The total amount of income or earnings available to a consumer for spending and saving after taxes are paid.