Your Estimate of the Market Risk Premium Is 6

question 39

Multiple Choice

Your estimate of the market risk premium is 6%.The risk-free rate of return is 5%,and General Motors has a beta of 1.2.According to the Capital Asset Pricing Model (CAPM) ,what is its expected return?

• A)9.1%
• B)10.5%
• C)12.0%
• D)12.2%

Understand the principles of reinforcement and their application in educational settings.

Identify strategies for effective reinforcement and the avoidance of reinforcement satiation.

Know the components and effectiveness of contingency contracts and token economies.

Evaluate the use of group-oriented contingencies and their outcomes.

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Definitions:

Ratio Data

A type of quantitative data that not only offers order and equal intervals between values but also has a natural zero point, enabling ratios to be calculated.

Nominal Data

Data categorized into distinct groups without any inherent order or ranking among the categories.

Specified Measure

A particular metric or standard defined for the purpose of evaluation, assessment, or calculation within a given context.

Natural Zero

A point on a scale that indicates the absence of the quantity being measured, indicating a true zero point where the measured phenomenon is nonexistent.