Examlex

Solved

USTreasury Bonds Currently Yield 6

question 3

Multiple Choice

U.S.Treasury bonds currently yield 6%.Consolidated Industries stock has a beta of 1.5.The rate of return on the S&P 500 is presently 18%.What is the rate of return that Consolidated Industries stockholders require?


Definitions:

Comparability

A financial accounting concept that ensures financial statements can be compared between periods and with other companies.

Company

A legal entity formed by a group of individuals to engage in and operate a business—commercial or industrial—enterprise.

Rising Prices

This term indicates an economic situation where the general level of prices of goods and services in an economy increases over a period.

Related Questions