Calculate the Expected Return for F Inc

question 79

Multiple Choice

Calculate the expected return for F Inc.which has a beta of 1.3 when the risk free rate is 0.06 and you expect the market return to be 0.125.

• A) 12.65%
• B) 13.55%
• C) 14.45%
• D) 15.05%
• E) 16.34%

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Definitions:

Larceny

The illegal taking of personal property belonging to another person with the intent to permanently deprive them of it.

Property Crime

Crimes that involve the theft of personal property or destruction of property without causing physical harm to another person.

Arson

The intentional act of setting fire to property, buildings, or wildland areas with malicious intent.

Willful Destruction By Fire

An act of intentionally setting fire to property, typically constituting a criminal offense.