Suppose the MiniCD Corporation's Common Stock Has a Return of 12%.Assume

question 40

Multiple Choice

Suppose the MiniCD Corporation's common stock has a return of 12%.Assume the risk-free rate is 4%, the expected market return is 9%, and no unsystematic influence affected Mini's return.The beta for MiniCD is:

• A)0.89.
• B)1.60.
• C)2.40.
• D)3.00.
• E)It is impossible to calculate beta without the inflation rate.

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Definitions:

Bodily Arousal

A physiological response to stimuli, characterized by an increase in energy, alertness, and readiness for action.

Deliberate Action

An intentional, conscious behavior directed towards achieving a specific goal.

Neurons

Specialized cells transmitting nerve impulses; the basic building blocks of the nervous system.

Somatic Nervous System

Division of the PNS consisting of nerves that carry information from the senses to the CNS and from the CNS to the voluntary muscles of the body.