What Is the Expected Market Return If the Expected Return

question 134

Multiple Choice

What is the expected market return if the expected return on Asset X is 20 percent, its beta is 1.5, and the risk free rate is 5 percent?

• A) 5.0%
• B) 7.5%
• C) 15.0%
• D) 22.5%

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Definitions:

Italy

A country in Southern Europe, known for its significant contributions to art, architecture, fashion, cuisine, and Western culture.

Degenerate

Originally used in physical and biological contexts to describe decline or decrease in function, the term can also refer to moral or cultural decline.

Surrealist

Pertaining to Surrealism, a 20th-century avant-garde movement in art and literature that sought to release the creative potential of the unconscious mind.

Nazi Regime

The authoritarian government led by Adolf Hitler in Germany from 1933 to 1945, known for its totalitarian policies and the perpetration of the Holocaust.