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

question 32

Multiple Choice

Use the following information to answer the question(s) below. All amounts are in millions.
-If the risk-free rate is 3% and the market risk premium is 5%,then the CAPM's predicted expected return for Nielson Motors is closest to:

• A)8.5%.
• B)9.0%.
• C)9.5%.
• D)10.0%.

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Definitions:

Illegal Reason

Refers to a motive or basis for action that is against the law or prohibited by legal statutes.

Sexual Harassment Claims

Legal allegations involving unwelcome sexual advances, requests for sexual favors, or other verbal or physical harassment of a sexual nature.

Title VII

A portion of the Civil Rights Act of 1964 that prohibits employment discrimination based on race, color, religion, sex, or national origin.

Disparate Impact

A theory in employment and legal disputes where policies, practices, or rules seemingly neutral result in a disproportionate impact on a protected group.