Barrick Gold Corp Stock Has a Beta of 2

question 63

Multiple Choice

Barrick Gold Corp stock has a beta of 2.1.If the risk-free rate is 2.6%,and expected market return is 9%,what is the expected return of Barrick Gold Corp stock,according to the CAPM?

• A)10.8%
• B)10.4%
• C)21.5%
• D)13.4%
• E)16%

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Definitions:

Anchored

Fixed firmly in position; a term often used metaphorically to describe something that is firmly established or secure.

Flexes

The action of bending a limb or joint or the ability to bend a muscle.

Musculoskeletal

Pertaining to the muscular and skeletal systems.

Skeletal Systems

The framework of bones and cartilage that supports the body, protects internal organs, and provides leverage for movement.