Given Gilbert's Beta of 1

question 108

Multiple Choice

Given Gilbert's beta of 1.10 and a risk free rate of 5%, what is the expected rate of return assuming a 10% market return?

• A) 21.5%
• B) 10.5%
• C) 5.5%
• D) 15.5%
• E) 16.5%

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Definitions:

Interest Rate

The percentage at which interest is charged or paid on borrowed or saved money.

Expected Profit Rate

The forecasted return on an investment over a specified period, taking into account both potential gains and losses.

Non Oil

Pertaining to economic sectors or industries that are not related to the extraction or processing of oil.

Corporation

A legal entity that is separate and distinct from its owners, capable of conducting business, entering into contracts, and owning assets.