The Required Return on a Security Is 10%,the Risk-Free Rate

question 46

Multiple Choice

The required return on a security is 10%,the risk-free rate is 5%,and the return on the market is 14%.What is the beta of the firm?

• A) 0.14
• B) 0.55
• C) 0.83
• D) 1.00
• E) 1.40

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Definitions:

Structuralism

A method of interpretation and analysis of aspects of human cognition, behavior, culture, and experience, focusing on relationships of contrast between elements in a conceptual system.

Functionalism

A psychological perspective that considers mental life and behavior in terms of active adaptation to the person's environment.

Gestalt Psychology

A theory of mind which emphasizes understanding the whole experience rather than its parts, focusing on patterns and contexts in perception.

Adjunct Instructor

A part-time instructor who teaches in colleges or universities, often without the benefits or security of full-time tenure-track positions.