Potash Corp Stock Has a Beta of 1

question 58

Multiple Choice

Potash Corp stock has a beta of 1.1,while Tim Horton's stock has a beta of 1.4.The risk-free rate is 1.9%,and the expected return on a portfolio with 30% weight in Potash and the remainder in Tim Horton's is 9.76%.What is the market risk premium?

• A)7%
• B)7.9%
• C)6%
• D)6.9%
• E)7.2%

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Definitions:

Vision And Hearing

are sensory processes that involve the perception of sight and sound, respectively, playing critical roles in human communication and interaction.

Iconic Memory

Iconic memory is the visual sensory memory register pertaining to the visual domain and a fast-decaying store of visual information.

Echoic Memory

A component of sensory memory that specifically stores auditory information, allowing sounds and words to be recalled within a few seconds after the sound is heard.

Short-term Memory

The capacity for holding a small amount of information in mind in an active, readily available state for a short period.