If ACR's Expected Total Return Is 25% and Its Required

question 157

Multiple Choice

If ACR's expected total return is 25% and its required rate of return is 20%,its alpha is

• A)+45%.
• B)+ 5%.
• C)- 5%.
• D)-45%.

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Definitions:

Basic Substance

A fundamental material or compound that is essential for a particular biological function or structure; often refers to simple, key molecules in biochemistry.

Amino Acids

Organic compounds that serve as the building blocks for proteins, essential to numerous processes in living organisms.

Triglycerides

A type of fat (lipid) found in your blood, made up of a glycerol molecule attached to three fatty acids, used by the body for energy or stored as fat.

Phospholipids

A class of lipids that are a major component of all cell membranes; they form bilayers that function as barriers to ions and molecules.