If Geek Computer Has a Beta of

question 43

Multiple Choice

If Geek Computer has a beta of .8,the return from Treasury bills is 3% and the return from the market portfolio is 20%,what is the required return from Geek stock?

• A) 16.6%
• B) 15.7%
• C) 22.8%
• D) 20.0%
• E) 17.5%

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Definitions:

Economic Efficiency

A condition in which resources are allocated in such a way that maximizes the net benefit to society, ensuring that goods and services are produced and distributed in the most cost-effective manner.

Import Quotas

Limits set by a government on the quantity of a certain good that can be imported into a country, used to protect domestic industries.

Tariffs

A tax imposed by a government on goods and services imported from other countries, affecting the price and availability of those items.

Foreign-Produced Automobiles

Cars and other types of vehicles that are manufactured outside of a country's borders and then imported for sale.