Your Estimate of the Market Risk Premium Is 5

question 81

Multiple Choice

Your estimate of the market risk premium is 5%.The risk-free rate of return is 4%,and General Motors has a beta of 1.5.According to the Capital Asset Pricing Model (CAPM) ,what is its expected return?

• A)10.4%
• B)11.0%
• C)11.5%
• D)11.9%

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Definitions:

Moral Responsibility

The obligation to act righteously and to acknowledge the impact of one's actions on others and the ethical standards of society.

Social Bonding

The process of developing attachments and connections between individuals, which can foster a sense of belonging and mutual support within groups or communities.

Peer Evaluations

Assessments made by individuals of the same status, such as coworkers or classmates, regarding each other's performance, skills, or behaviors.

Self-esteem

An individual's overall subjective emotional evaluation of their own worth.