Suppose That Luther's Beta Is 0

question 89

Multiple Choice

Suppose that Luther's beta is 0.9.If the market risk premium is 8% and the risk-free interest rate is 4%,then then expected return for Luther stock is?

• A)7.6%
• B)11.6%
• C)11.2%
• D)12.9%

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Definitions:

Latent Learning

A form of learning that occurs without any obvious reinforcement of the behavior or associations that are learned, becoming apparent only when there is an incentive to demonstrate it.

Classical Conditioning

Classical conditioning is a learning process that occurs through associations between an environmental stimulus and a naturally occurring stimulus.

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior.

Latent Learning

Learning that occurs without any obvious reinforcement of the behavior or associations that are learned.