The Expected Rate of Return on Rooter Industries Is 1

question 56

Multiple Choice

The expected rate of return on Rooter Industries is 1.5 times the 16% expected rate of return from the market. What is Research's beta if the risk free rate is 8%?

• A) 2
• B) 3
• C) 4
• D) 5
• E) 6

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Definitions:

Rule Consequentialism

An ethical theory that posits the morality of an action depends on the consequences of the rules that would be established by following or endorsing that action.

General Rules

Broad, overarching principles or guidelines that govern behavior or actions in various scenarios.

Rule Consequentialists

Philosophers or ethical theorists who believe that adherence to beneficial rules or norms yields the best consequences.

Absolute

Something that is considered to be universal, unconditional, and complete in itself, often used in the context of truth or moral principles.