What Is the Expected Return for Asset X If It

question 147

Multiple Choice

What is the expected return for Asset X if it has a beta of 1.5, the expected market return is 15 percent, and the expected risk-free rate is 5 percent?

• A) 5.0%
• B) 7.5%
• C) 15.0%
• D) 20.0%

Understand the cognitive biases and their effects on perception and decision-making.

Recognize the organization of memory about people by specific categorizations.

Understand the distinction between memory-based judgments and on-line impression formation.

Explore the effects of affect and emotion on social cognition and memory.

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Definitions:

Expenses

are the costs incurred in the operation of a business or the execution of a project, including money spent on goods, services, and other necessary items.

Return on Equity

A financial ratio measuring the profitability of a company expressed as a percentage of equity, indicating how effectively a company uses its equity investments to generate profits.

Total Assets

The sum of all assets owned by a company, including both current and fixed assets, giving an overview of the company's financial health.

Sales

The exchange of a commodity for money; the action of selling something.