Given Gitech's Beta of 1

question 186

Multiple Choice

Given Gitech's beta of 1.55 and a risk-free rate of 8 percent, what is the expected rate of return assuming a 14 percent market return?

• A) 12.4 percent
• B) 14.3 percent
• C) 17.3 percent
• D) 20.4 percent
• E) 29.7 percent

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Definitions:

CS

Stands for Conditioned Stimulus, an initially neutral stimulus that, after being associated with an unconditioned stimulus, triggers a conditioned response.

US

In the context of conditioning, this stands for the Unconditioned Stimulus, which automatically triggers a response without prior learning.

Classical Conditioning

A systematic method of pairing two stimuli repeatedly for learning; initially, the response comes from the second stimulus but ultimately comes from the first stimulus alone.

Violently Ill

Experiencing severe and intense symptoms of illness, often with rapid onset and significant discomfort or distress.