Calculate the Expected Return for B Services Which Has a Beta

question 76

Multiple Choice

Calculate the expected return for B Services which has a beta of 0.83 when the risk-free rate is 0.05 and you expect the market return to be 0.12.

• A) 14.96 percent
• B) 16.15 percent
• C) 10.81 percent
• D) 17.00 percent
• E) 15.25 percent

---

Definitions:

Telephone Services

The provision of telecommunication facilities enabling voice communication over distances.

Restaurant Meals

Food and beverage items prepared and served by dining establishments to customers, typically consumed on premises.

Tax

A compulsory monetary fee or a different kind of tax required by a government entity from taxpayers, aimed at raising funds for government operations and public services.

Consumption

The purchase and use of goods and services by households. It is a primary component of GDP and an indicator of economic health.