The Risk-Free Rate Is 4

question 82

Multiple Choice

The risk-free rate is 4.5 percent.The expected return on the market is 13 percent with a standard deviation of 15 percent.What is the required rate of return for Stock X if it has a beta of 1.4?

• A) 16.40%
• B) 18.20%
• C) 20.50%
• D) 22.70%

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Definitions:

Satisfied Needs

The condition of having one's basic or specific desires fulfilled or met.

Motivational Impact

The effect of different factors on an individual's drive or incentive to perform tasks and goals.

Physiological Desire

A fundamental need stemming from the body's biological functions, such as hunger, thirst, or the need for sleep.

Psychological Desire

An emotional state that compels individuals towards a specific need or want, influencing behavior.