The Market Rate of Return Increased by 8% While the Rate

question 68

Multiple Choice

The market rate of return increased by 8% while the rate of return on XYZ stock increased by 4%. The beta of XYZ stock is

• A) -2.0.
• B) -0.40.
• C) 0.50.
• D) 2.0.

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Definitions:

Marginal Cost

The cost of producing one additional unit of a good, calculated by the change in total cost that comes from producing one more unit of output.

Increasing Rate

Increasing rate refers to a situation where the growth or rate of any variable, such as price, cost, or production, rises over a period.

Average Fixed Costs

The fixed costs of production (costs that do not change with the level of output) divided by the quantity of output produced.

Earrings

Decorative jewelry pieces worn on the earlobes or other parts of the ear.