Huit Industries' Common Stock Has an Expected Return of 14

question 92

Multiple Choice

Huit Industries' common stock has an expected return of 14.4% and a beta of 1.2.If the expected risk-free return is 8%,what is the expected return for the market (round your answer to the nearest .1%) ?

• A)7.7%
• B)9.6%
• C)12.0%
• D)13.3%

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Definitions:

Quantity Variance

The difference between the expected and actual quantities used or produced in a process.

Total Cost Variance

The difference between the actual cost and the standard cost of an operation, process, or product.

Direct Materials Price

The cost of raw materials and components required to produce a finished product.

Quantity Variances

The difference between the expected and actual amount of materials or resources used in a production process, often in reference to budgeting and cost control.