The Stock of Big Joe's Has a Beta of 1

question 50

Multiple Choice

The stock of Big Joe's has a beta of 1.14 and an expected return of 11.6%. The risk-free rate of return is 4%. What is the expected return on the market?

• A) 7.60%
• B) 8.04%
• C) 9.33%
• D) 10.67%
• E) 12.16%

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Definitions:

Workers' Compensation Laws

Legislation designed to provide financial and medical benefits to employees who are injured or become ill as a direct result of their job.

Financial Compensation

Payment given to a person or entity as reimbursement for loss, injury, or suffering.

Injured on the Job

Pertains to an employee suffering physical or mental harm or illness as a direct result of their work or work environment.

Bona Fide Occupational Qualification

An employment qualification that is reasonably necessary for the normal operation of a particular business or enterprise, and can justify discrimination based on characteristics like religion, nationality, or gender in certain circumstances.