Given Gilbert's Beta of 1

question 108

Multiple Choice

Given Gilbert's beta of 1.10 and a risk-free rate of 5 percent, what is the expected rate of return assuming a 10 percent market return?

• A) 21.5 percent
• B) 10.5 percent
• C) 5.5 percent
• D) 15.5 percent
• E) 16.5 percent

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Definitions:

Accepted by Offeree

The act of an offeree agreeing to the terms of an offer, thereby creating a binding contract.

Extend an Offer

This refers to the act of presenting a proposal to enter into a contract, which may include terms of employment, purchase offers, or other agreements.

Subjective

Based on or influenced by personal feelings, tastes, or opinions rather than external facts or evidence.

Words and Actions

This phrase typically emphasizes the importance of aligning one's spoken words with their actions, often used in contexts discussing integrity, leadership, and personal accountability.