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A Particular Stock Has a Beta of 1

question 79

Multiple Choice

A particular stock has a beta of 1.4 and an expected return of 13%.If the expected risk premium on the market portfolio is 6%,what's the expected return on the market portfolio?


Definitions:

Profits

The excess of revenues over costs and expenses in a business or economic transaction.

Price Elasticity

A measure in economics to show how the quantity demanded of a good or service responds to a change in its price.

Marginal Cost

The additional expenditure required to produce one more unit of a product or service.

Profit-Maximizing

The strategy or practice of adjusting production and distribution to achieve the highest possible profit from operations.

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