Sterling Incorporated Has a Beta of 1

question 7

Multiple Choice

Sterling Incorporated has a beta of 1.0.If the expected return on the market is 12%,what is the expected return on Sterling Incorporated's stock?

• A)9%
• B)10%
• C)12%
• D)Insufficient information is provided

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Definitions:

Minimum Value

The lowest possible amount, price, or level that something can reach.

National Defense

Government efforts, strategies, and structures to protect a country against external threats or military aggression.

Federal Spending

The total expenditure of the federal government, including spending on defense, welfare, infrastructure, and other public services.

Health Care

The organized provision of medical services to individuals or a community to maintain or improve health.