Manly Manufacturing Pty Ltd Stock Has an Expected Return of 14.47

question 9

Multiple Choice

Manly Manufacturing Pty Ltd stock has an expected return of 14.47 per cent.The risk-free rate is 3.8 per cent and the market risk premium is 8.6 per cent.What is the stock's beta?

• A)1.21
• B)1.28
• C)1.24
• D)1.32
• E)1.19

Understand the mechanisms and purposes of international and domestic bonds in global finance.

Recognize the importance of assessing risk in capital investments using appropriate analytical methods.

Gain insight into the various investment vehicles available for diversifying investment portfolios, including mutual funds and stocks.

Learn about the cost of capital and its significance in international investment decisions.

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Definitions:

Insurance

A contract in which the insured party makes payments to the insurer in exchange for the insurer’s promise to make payment or transfer goods to another party in the event of injury or destruction to the insured party’s property or life.

Shipping Term

Conditions that outline the delivery arrangements and responsibilities between buyers and sellers, often specified in contracts.

FAS

A term in international commerce, standing for "Free Alongside Ship," indicating that the seller is responsible for the delivery of goods to a named port alongside a vessel.

Risk Passes

A term indicating the point in a transaction where the liability for loss or damage to goods transfers from the seller to the buyer.