Calculate the Expected Return for D Industries Which Has a Beta

question 59

Multiple Choice

Calculate the expected return for D Industries which has a beta of 1.0 when the risk free rate is 0.03 and you expect the market return to be 0.13.

• A) 8.6%
• B) 9.2%
• C) 11.0%
• D) 12.0%
• E) 13.0%

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Definitions:

Decimals

Numerical digits that represent fractions of ten, used to express numbers less than one or to provide precision in numerical representations.

Mixed/Whole Numbers

Numbers consisting of an integer and a fractional part, typically represented as a whole number and a proper fraction.

Percents

A mathematical representation of a fraction of 100, used to describe proportions or rates.

Decimals

Numbers expressed using a decimal system, involving a point to separate the whole number from the fractional part.