Asset P Has a Beta of 1

question 58

Multiple Choice

Asset p has a beta of 1.1.The risk-free rate of return is 4 percent,while the return on the market portfolio of assets is 12 percent.The asset's required rate of return is:

• A) 6%
• B) 12.8%
• C) 5.4%
• D) 10%
• E) 9.5%

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Definitions:

Bipedal Walking

The ability to walk upright on two legs, a characteristic feature of humans and their ancestors that distinguishes them from other primates.

Phalanges

Bones in the fingers or toes.

Mineral

In the diet, an element that is required in small amounts for normal metabolism.

Bones

Hard, dense connective tissue that forms the structural elements of the skeleton in vertebrates, providing support and protection.