Asset Y Has a Beta of 1

question 27

Multiple Choice

Asset y has a beta of 1.2.The risk-free rate of return is 4 percent,while the return on the market portfolio of assets is 10 percent.What is the market risk premium?

• A) 6%
• B) 10%
• C) 11.2%
• D) 13.2%
• E) 8%

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Definitions:

Breast Cancer

A type of cancer that forms in the cells of the breasts, affecting both men and women, but predominantly women.

Attentional Focus

The cognitive process of concentrating on one aspect of the environment while ignoring others.

Executive Functioning

A set of mental skills coordinated in the brain, including memory, flexible thinking, and self-control, that helps manage time, pay attention, and plan actions.

Risk of Death

The probability or chance that an individual will die from a disease or other circumstances within a certain period of time.