The Risk-Free Rate Is 5% and the Expected Return on the Market

question 53

Multiple Choice

The risk-free rate is 5% and the expected return on the market portfolio is 13%.A stock has a beta of 1.5,what is its expected return?

• A) 17%
• B) 12%
• C) 19.5%
• D) 24.5%

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Definitions:

Exploitation

The act of using someone or something unfairly for one's own advantage, often at the expense of the exploited party.

Pediatric Playroom

A specially designed room or area with toys and activities for children in hospitals, aimed at providing a safe and fun environment for play and recreation during their stay.

"Well" Side

The side of a healthcare setting designed for individuals not exhibiting symptoms of contagious diseases or in need of isolation.

Contagious

The characteristic of a disease or condition to be spread from one person or organism to another by direct or indirect contact.