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:

Revenue

The income generated from normal business operations, such as the sale of goods or services.

Budget

A detailed plan for the future that is usually expressed in formal quantitative terms.

Activity Measure

An allocation base in an activity-based costing system; ideally, a measure of the amount of activity that drives the costs in an activity cost pool.

Patient-visits

A measure used in healthcare to quantify the number of visits or interactions patients have with healthcare providers.