The Common Stock of United Industries Has a Beta of 1.34

question 73

Multiple Choice

The common stock of United Industries has a beta of 1.34 and an expected return of 14.29 percent.The risk-free rate of return is 3.7 percent.What is the expected market risk premium?

• A)7.02 percent
• B)7.90 percent
• C)10.63 percent
• D)11.22 percent
• E)11.60 percent

---

Definitions:

Sever

To cut off or divide property interests or legal relationships.

Enforce

means to compel observance of or compliance with a law, rule, or obligation.

Statutorily Barred

A legal limitation preventing certain actions, typically due to the passage of time according to statutory law.

Licensed

Having received official permission by a regulatory authority or body to engage in a professional activity or business.