A Stock Has an Expected Return of 14

question 42

Multiple Choice

A stock has an expected return of 14.21 percent.The return on the market is 11.8 percent and the risk-free rate of return is 3.2 percent.What is the beta of this stock?

• A).65
• B)1.09
• C)1.42
• D)1.28
• E)1.78

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Definitions:

Unlimited Liability

A legal obligation where business owners and investors are personally responsible for all of the debts of the business.