The Expected Rate of Return on Research Industries Is Twice

question 118

Multiple Choice

The expected rate of return on Research Industries is twice the 12% expected rate of return from the market. What is Research's beta if the risk free rate is 6%?

• A) 2
• B) 3
• C) 4
• D) 5
• E) 6

---

Definitions:

T-Cell Count

A measure of the number of T-cells, a type of white blood cell important for the immune system, in a cubic millimeter of blood, used to monitor immune function, especially in HIV/AIDS.

HIV Antibodies

Proteins produced by the body's immune system in response to infection with the human immunodeficiency virus (HIV).

HIV-Positive

A diagnosis given when an individual has the Human Immunodeficiency Virus, which can lead to AIDS if untreated.

Kaposi's Sarcoma

A type of cancer that forms in the lining of blood and lymph vessels and is often associated with HIV/AIDS.