What Is the Expected Return on a Stock with a Beta

question 64

Multiple Choice

What is the expected return on a stock with a beta of 1.09, a market risk premium of 8%, and a risk-free rate of 4%?

• A)4.36%
• B)8.36%
• C)8.72%
• D)12.72%

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Definitions:

Elasticity of Supply

A metric assessing how the provision of a good changes in response to price adjustments.

Quantities Supplied

The amount of goods and services that producers are willing and able to sell at a given price over a specified period.

Price-Elasticity

A measure of how responsive the quantity demanded of a good is to a change in its price, indicating how shifts in price can affect supply and demand.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a specific price.