Calculate the Expected Return for B Services Which Has a Beta

question 100

Multiple Choice

Calculate the expected return for B Services which has a beta of 0.83 when the risk free rate is 0.05 and you expect the market return to be 0.12.

• A) 14.96%
• B) 16.15%
• C) 10.81%
• D) 17.00%
• E) 15.25%

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Definitions:

Tariff Barriers

Economic measures implemented by countries to restrict imports by increasing the cost of foreign goods through taxes.

Foreign Direct Investment

Investment made by a company or individual in one country in business interests in another country, in the form of establishing business operations or acquiring business assets.

Neoliberal Globalization

An economic and political paradigm that promotes free markets, deregulation, and an increase in global trade and investment.

World Trade Organization

An international organization that regulates international trade, setting legal and institutional foundations for global trade relations.