USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 52

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

-Refer to Exhibit 7.4. If the expected return on the market is 11.5% and the risk-free rate of return is 4.5%, then what are the required rates of return for stocks X, Y, and Z based on the CAPM? X Y Z

• A) 4.8% 18.3% 16.9%
• B) 7.2% 20.7% 22.3%
• C) 10.7% 17.5% 14.4%
• D) 10.1% 12.2% 19.2%
• E) 11.1% 12.2% 21.3%

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Definitions:

Competency Matrix

A framework used to define and assess the skills, knowledge, and behaviors required for specific roles or tasks within an organization.

Job Specification

A written statement that explains what a job demands of jobholders and the human skills and factors required.

Jobholders

Individuals who are currently employed and hold a position within an organization.

Measured Performance

The evaluation and documentation of an employee's work output and productivity based on predefined criteria and objectives.