A Stock Has an Expected Return of 14

question 48

Multiple Choice

A stock has an expected return of 14.3 per cent,the risk-free rate is 3.2 per cent,and the market risk premium is 8.1 per cent.What must the beta of this stock be?

• A)1.21
• B)0.94
• C)1.08
• D)1.37
• E)0.88

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Definitions:

Psychological Problems

Issues affecting the mental health and well-being of an individual, often requiring professional intervention.

Physical Problems

Physical problems refer to any type of health issue or condition that affects the body's ability to function normally.

Problem Solving Techniques

Methods or approaches used to address problems and find effective solutions.

Solution

A homogeneous mixture of two or more substances in which the solute is completely dissolved in the solvent.