Suppose That Gold Digger's Beta Is -0

question 102

Multiple Choice

Suppose that Gold Digger's beta is -0.8.If the market risk premium is 8% and the risk-free interest rate is 4%,then the expected return for Gold Digger's stock is?

• A)-2.4%
• B)4.8%
• C)2.4%
• D)10.4%

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Definitions:

Sample Frame

The list or database from which a sample is drawn for research or statistical analysis, representing the population of interest.

Population

The total number of individuals within a specified area or group, often used in statistics and research.

Sample

A subset of a population selected for measurement, observation, or questioning to provide statistical information about the population.

Sampling Error

The error that occurs in statistical analysis from selecting a sample that is not perfectly representative of the entire population, potentially leading to inaccurate results.