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

question 56

Multiple Choice

The risk-free rate is 5% and the expected return on the market portfolio is 13%.A stock has a beta of 1.0,what is its expected return?

• A) 8%
• B) 13%
• C) 5%
• D) none of the above

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Definitions:

Heterosexual

A romantic or sexual preference for people of the opposite gender.

Homosexual

Homosexual refers to being sexually attracted to members of the same sex.

Bisexual

Pertains to an individual who is attracted to both men and women.

Monogamous

Referring to a relationship or mating system where an individual has one partner during their lifetime or at any one time.