Use the Following Information to Answer the Question(s)below

question 59

Multiple Choice

Use the following information to answer the question(s) below. The volatility of the market portfolio is 10%,the expected return on the market is 12%,and the risk-free rate of interest is 4%.
-The beta for Taggart Transcontinental is closest to:

• A)0.75.
• B)0.80.
• C)1.00.
• D)1.10.

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Definitions:

Bell-shaped Curve

A graphical depiction of a normal distribution of data, where the bulk of data points lie near the mean, creating a symmetrical bell shape.

Percentiles

Statistical values that represent the position of a score in relation to other scores in a distribution, indicating the percentage of scores that lie below it.

Z-scores

Standardized scores that indicate how many standard deviations an element is from the mean of a dataset, used in comparing scores from different distributions.

Percentile Rank

A statistical measure indicating the relative position of a score within a larger group, showing the percentage of scores it is equal to or greater than.