L9 CorpHas a Beta of 1

question 80

Multiple Choice

L9 Corp.has a beta of 1.34 and an expected return of 21%.If the market return is 17%,what is the return you would expect to get from a T-Bill?

• A) 5.24%
• B) 8.64%
• C) 3.41%
• D) 2.16%
• E) 4.50%

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Definitions:

Analytical fashion

A method or manner that involves understanding complex issues by breaking them down into simpler components for analysis.

Scientific thinking

Involves using systematic, evidence-based methods and critical analysis to solve problems and make decisions.

Rules of thumb

General principles that provide practical instructions or guidance, based on experience rather than theory, for making decisions or solving problems.

Simplifying strategies

Approaches or methods aimed at reducing complexity and making tasks or processes easier to understand and manage.