Calculate the Expected Return for a Industries, Which Has a Beta

question 134

Multiple Choice

Calculate the expected return for A Industries, which has a beta of 1.75 when the risk free rate is 0.03 and you expect the market return to be 0.11.

• A) 11.13 percent
• B) 14.97 percent
• C) 16.25 percent
• D) 22.25 percent
• E) 17.0 percent

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Definitions:

Fluoroscope

An imaging device that uses X-rays to create real-time moving images of the interior of an object or a body.

Radiation

The emission of energy as electromagnetic waves or subatomic particles, especially high-energy particles that cause ionization.

Organs

Structures made up of different tissues that perform specific functions necessary for the life and maintenance of an organism.

Contrast Medium

A substance used in medical imaging to improve the contrast of structures or fluids within the body in scans such as X-rays, MRIs, and CT scans.