The Expected Return for Zbrite Stock Calculated Using the CAPM

question 53

Multiple Choice

The expected return for Zbrite stock calculated using the CAPM is 15.5 percent. The risk-free rate is 3.5 percent and the beta of the stock is 1.2. Calculate the implied market risk premium.

• A) 5.5 percent
• B) 6.5 percent
• C) 10.0 percent
• D) 15.5 percent
• E) 12.0 percent

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A legal procedure in which a portion of an individual's earnings is withheld by an employer for the payment of a debt.

Federal Consumer Credit Protection Act

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A legal claim or hold placed on property by a law enforcement agency due to pending legal action or investigation.

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