In the CAPM, a Stock Has a Beta Coefficient of 0.1.The

question 15

Multiple Choice

In the CAPM, a stock has a beta coefficient of 0.1.The average returns to all stocks in the market is 10%.If the interest rate on three-month T-bills is at around 2 percent, what is the expected return to this stock? Assume that unsystematic risk is zero.

• A)2.5 percent
• B)5.0 percent
• C)7.5 percent
• D)10.0 percent

---

Definitions:

Athlete Sponsorships

Agreements in which a company financially supports an athlete in exchange for advertising and endorsement, leveraging the athlete's influence to promote products or services.

Nike "Swoosh"

The distinctive check mark logo of Nike, representing the wing of the Greek goddess of victory, Nike.

SWOT Analysis

A strategic planning technique used to identify and evaluate the Strengths, Weaknesses, Opportunities, and Threats related to a project or business venture.

Job Prospects

The potential opportunities for employment and career advancement in a particular field or profession.