Tanzlin Manufacturing's Common Stock Has a Beta of 1

question 75

Multiple Choice

Tanzlin Manufacturing's common stock has a beta of 1.5.If the expected risk-free return is 9% and the expected return on the market is 14%,what is the expected return on the stock?

• A)13.5%
• B)21.0%
• C)16.5%
• D)21.5%

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Definitions:

Social Controversy

A dispute within society over a particular issue or set of issues, often involving differing values, beliefs, and opinions among groups or individuals.

Sociological Imagination

The sociological imagination is the ability to see the relationship between individual experiences and larger social influences, understanding personal issues as part of broader social patterns.

Social Structure

The pattern of social relationships and social institutions that make up society.

Chicago School

A school of thought in sociology associated with the University of Chicago, known for its influence on urban sociology, social ecology, and symbolic interactionism.