The Risk-Free Rate Is 7 Percent,the Expected Return on the Market

question 32

Multiple Choice

The risk-free rate is 7 percent,the expected return on the market is 10 percent,and the expected return on Security J is 13 percent.What is the beta of Security J?

• A) 0.5
• B) 1.0
• C) 1.5
• D) 2.0
• E) 2.5

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Definitions:

Older Men

Adult males who are significantly advanced in age, often characterized by experience, maturity, and changes in physical and cognitive abilities.

Educational Attainment

The highest level of education an individual has completed, such as high school, undergraduate, or graduate degrees.

Likelihood

The probability or chance that a particular event will occur.

Marriage

A legally and socially sanctioned union between individuals that establishes rights and obligations between them and their children, and society.