The Expected Rate of Return on Rewind Industries Is 2

question 54

Multiple Choice

The expected rate of return on Rewind Industries is 2.5 times the 12 percent expected rate of return from the market. What is Rewind's beta if the risk-free rate is 6 percent?

• A) 2
• B) 3
• C) 4
• D) 5
• E) 6

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Definitions:

Marketplace

An open environment for buying and selling goods, services, or ideas, either physically or online.

Ethical Stand

Represents a person's or organization's positioning on moral principles or issues, guiding their behavior and decisions.

Profit

The financial gain obtained when the amount earned from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Strategic Planning

A systematic process of envisioning a desired future and translating this vision into broadly defined goals and a sequence of steps to achieve them.