If Geek Computer Has a Beta of 1

question 52

Multiple Choice

If Geek Computer has a beta of 1.1,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) 20.0%
• B) 22.8%
• C) 15.7%
• D) 18.7%
• E) 21.7%

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Definitions:

Output Demanded

Refers to the quantity of goods or services that consumers and other economic agents are willing to buy at a given price.

Output Supplied

Refers to the quantity of goods or services that producers are willing and able to sell at a given price level within a specified period.

Aggregate Demand

Complete economic consumption desires for all goods and services, measured at a particular total price level within a predetermined timeframe.

Price Level

An index that measures the average of current prices across the entire spectrum of goods and services produced in the economy compared to a base year.