Calculate the Expected Return for F Inc

question 27

Multiple Choice

Calculate the expected return for F Inc., which has a beta of 1.3 when the risk-free rate is 0.06 and you expect the market return to be 0.125.

• A) 12.65 percent
• B) 13.55 percent
• C) 14.45 percent
• D) 15.05 percent
• E) 16.34 percent

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Definitions:

Freud

Sigmund Freud, a neurologist and the founder of psychoanalysis, a method for treating psychopathology.

Internal Danger

Perceived threats or stresses that originate from within oneself, such as fears, anxieties, and negative self-beliefs.

Oral Fixation

A concept in psychoanalytic theory referring to an excessive focus on oral activities, believed to stem from issues during the oral stage of psychosexual development.

Overindulgence

Excessive indulgence in activities or consumption, often to the detriment of one's health or well-being.