The Expected Rate of Return on Rewind Industries Is 2

question 109

Multiple Choice

The expected rate of return on Rewind Industries is 2.5 times the 12% expected rate of return from the market. What is Rewind's beta if the risk free rate is 6%?

• A) 2
• B) 3
• C) 4
• D) 5
• E) 6

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Definitions:

Cyclic

Referring to occurrences or processes that exhibit a series of repeated events or stages which happen in a predictable sequence.

Irruptive

A population growth pattern characterized by sudden increases due to favorable conditions, followed by steep declines as those conditions change.

K-Selected Species

K-selected species are organisms that tend to have fewer offspring, longer gestation periods, and more parental care, thriving in stable environments.

S-Shaped Growth Curve

A pattern of population growth that starts slowly, accelerates, and then slows down again, leveling off when carrying capacity is reached, resembling the shape of an "S".