Suppose That Luther's Beta Is 0

question 89

Multiple Choice

Suppose that Luther's beta is 0.9.If the market risk premium is 8% and the risk-free interest rate is 4%,then then expected return for Luther stock is?

• A)7.6%
• B)11.6%
• C)11.2%
• D)12.9%

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Definitions:

Test of Logical Strength

An assessment or evaluation of the cogency or persuasiveness of logical arguments based on their structure and premises.

Statistical Analyses

The techniques used to interpret, describe, and make inferences from data sets, often involving mathematical calculations.

Inductive Reasoning

A method of reasoning in which general conclusions are drawn from specific observations or instances.

Probabilistic Conclusions

Inferences or outcomes derived from reasoning that incorporate the principles of probability, often used in scenarios where outcomes are uncertain.