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:

Prenuptial

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Heritability

A measure of how much of the variation in a trait within a population can be attributed to genetic differences among individuals in that population.

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