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:

Shared Environmental Factors

Elements within an environment that individuals are exposed to similarly, influencing their development or behavior collectively.

Antisocial Behavior

involves actions that harm or lack consideration for the well-being of others, often violating social norms or laws.

Personality

The distinct blend of feelings, attitudes, and actions characterizing a person's responses.

Resilience

The capacity to recover quickly from difficulties; toughness, particularly in the face of adversity or trauma.